Question: A firm doesn't have sufficient funds to continue operating and files for bankruptcy. The order of security owner's claims will be settled in this order

A firm doesn't have sufficient funds to continue operating and files for bankruptcy. The order of security owner's claims will be settled in this order (most senior claim to junior claim):

A.

Mortgage bondholder, all preferred and common stockholders, debenture bondholder.

B.

Common stockholder, preferred stockholder, bondholder

C.

Bondholder, preferred stockholder, common stockholder

D.

Debenture bondholder, mortgage bondholder, all preferred and common stockholders.

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