Which of the following parties receive the residual claim when bankruptcy does occur?

a. preferred stockholders

b. common stockholders

c. banks

d. debtholders

Which of the following is NOT the drawback of the discounted payback period?

a. It does not take into account the time value of money

b. it has no benchmark against which to compare the payback period

c. it also does not consider cash flows beyond the payback period

d. all of the above

d.