Which of the following statements is FALSE? 

A. In the extreme case, the debt holders take legal ownership of the firm's assets through a process called bankruptcy. 

B. After a firm default, debt holders are given certain rights to the assets of the firm. 

C. Equity holders expect to receive dividends and the firm is legally obligated to pay them. 

D. A firm that fails to make the required interest or principal payments on the debt is in default.

Answer rating: 100% (QA)

Solution C Equity holders expect to receive divide... View the full answer