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If Green Caterpillar ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders. This statement is correct ,
If Green Caterpillar ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders.
This statement is correct because:
Debtholders and preferred shareholders are considered residual investors
Debtholders are treated as residual investors
Common shareholders are treated as residual investors
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