Common shares have a "residual claim" on firm assets. This means... Question 11 options: a) They get whatever's left over after interest, taxes and preferred dividends are paid. b) Leverage reduces the value of shares because interest takes cash that would have gone to shareholders. c) Preferred shares can't be sold in the open market because they have a claim similar to that of bonds. d) You'd have to be crazy to buy common shares.

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The detailed answer for the above question is provided below The answer is a They get whatevers left ... View the full answer