To what does the absolute priority rule refer?

Group of answer choices

It stipulates that a firm must file for Chapter 11 bankruptcy prior to filing for Chapter 7 bankruptcy to ensure that the common shareholders rights dont get violated

It stipulates that the federal bankruptcy court will have full power to modify any decision handed down by a lower bankruptcy court

It stipulates that common shareholders are the only category of a firms investors that will have voting rights

It stipulates that, in the event of liquidation, senior bondholders are paid first, then junior bondholders, then preferred shareholders, and finally common shareholders