Firms must make regular payments to ________ but are under no contractual obligation to pay dividends to ________.
A)common stockholders; preferred stockholders.
B)preferred stockholders; bondholders.
C)bondholders; common stockholders.
D)common stockholders,bondholders.

Question

Quizplus · Accepted Answer

Firms are contractually obligated to make regular interest payments to bondholders, but they are not required to pay dividends to common stockholders.

Firms Must Make Regular Payments to ________ but Are Under