Correct order of pay-out from the earnings of corporation

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1. Which of the following answers shows the correct order of pay-out from the earnings of a corporation:

A. 1. Bonds 2. Common Stock 3. Preferred Stock

B. 1. Common Stock 2. Bonds 3. Preferred Stock

C. 1. Common Stock 2. Preferred Stock 3.Bonds

D. 1. Bonds 2. Preferred Stock 3. Common Stock

2. From an investor's perspective, which of the following investments is considered to be the most risky?

A. Treasury Bills

B. Grade A corporate bonds

C. Preferred Stocks of Company XYZ

D. Common Stock of Company XYZ

Reference no: EM132002696

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