Comparisons between debt and equity

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Reference no: EM131057668

Which one of the following comparisons between debt and equity is correct?

a. The stockholders are the firm's owners but have a lower claim to the firm's assets than do the creditors.

b. The stockholders have first claim to the firm's assets but the creditors are the owners.

c. Both creditors and stockholders vote to elect the board of directors.

d. Stockholders are the owners of the firm but the creditors vote on all major decisions.

Reference no: EM131057668

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