Question

Assume that you are a share holder of a corporation and the corporation has just gone bankrupt. Its liabilities are far in excess of its assets. You will be called on to pay:
Select one:
a. a proportional share of all creditor claims based on the number of common shares that you own.
b. a proportionate share of bondholder claims based on the number of common shares that you own.

c. nothing.
d. an amount that could, at most, equal what you originally paid for the shares of common stock in the corporation​

Answer 1

Answer:

You will be called on to pay:c. nothing.