Which of the following is FALSE of rights and income distribution?

Select one:

a.

Stock rights allow stockholders to purchase additional shares of stock in direct proportion to the number of shares they own.

b.

The claims of the equityholders on a firm's assets have priority over the claims of creditors because the equityholders are the owners of the firm.

c.

Preemptive rights allow common stockholders to maintain their proportionate ownership in the corporation when when the firm sells new shares of stock.

d.

A common stockholder has no guarantee of receiving any cash inflows, but receives what is left after all other claims on the firm's income and assets have been satisfied.