Question $2(1$ point$)$: With regard to financial claims, the following is true:

a$.$ Preferred stock dividends are usually cumulative, that is$,$ unpaid dividends

cumulate and must be paid to investors before dividends are paid to common

stock holders

b$.$ Debt holders may have fixed or variable income and payment to bond holders is

determined depending on the borrower's ability to pay

c$.$ Common stock has limited liability meaning that holders are personally liable for

the firm's obligations

d$.$ a and $b$

e$.$ a$,$b and c