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ABC Ltd. is insolvent. It has $500,000.00 in assets to be distributed to the security holders. What is the order of payment of its security

ABC Ltd. is insolvent. It has $500,000.00 in assets to be distributed to the security holders. What is the order of payment of its security holders:

preferred shareholders, then general creditors, then secured creditors

common shareholder, then secured creditors,

preferred shareholders, then general creditors, then any surplus to the corporation

None of the above

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