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Stockholders normally receive higher expected returns, compared to bondholders, since a. the government mandates higher payments to stockholders. b. stock prices go up and down
Stockholders normally receive higher expected returns, compared to bondholders, since a. the government mandates higher payments to stockholders. b. stock prices go up and down while bond prices do not. c. profits may only be retained by the corporation and not paid out to stockholders. d. stockholders could be left with nothing if the corporation fails, and bond interest payments even if the corporation suffers losses
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