accounting MCQ

A company has issued subordinated debt securities. Which of the following reflects the priority that would apply in the event of default? A B Mortgage loans first, followed by preference shares, then equity shares, then subordinated debt. Mortgage loans first, followed by preference shares, then subordinated debt, then equity shares. Mortgage loans first, followed by subordinated debt, then preference shares, then equity shares. Subordinated debt first, followed by mortgage loans, then preference shares, then equity shares. D