Asked by
Erika Mariner
on Oct 19, 2024Verified
The term "residual claimant" refers to
A) bond holders.
B) option holders.
C) equity/shareholders.
D) suppliers.
Residual Claimant
An individual or entity entitled to make a claim on the residual value of an entity's assets after all liabilities have been paid in the event of a liquidation.
Equity/Shareholders
Refers to the ownership interest held by shareholders in a corporation, represented by the company's common and preferred stock.
- Evaluate how corporate financial strategies, such as the plowback ratio and EBIT, influence the value of a business and the returns for investors.
Verified Answer
LP
Learning Objectives
- Evaluate how corporate financial strategies, such as the plowback ratio and EBIT, influence the value of a business and the returns for investors.