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What are some differences in the income received by common stockholders and the income received by bondholders? Dividends are not fixed, but interest is generally
What are some differences in the income received by common stockholders and the income received by bondholders?
Dividends are not fixed, but interest is generally a fixed dollar amount.
Common stock pays dividends while bonds pay interest.
Both dividends and interest income are guaranteed as long as the corporation is generating sufficient income.
Dividends are not based on the par value of stock, but interest is generally based on a bond's par value.
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