What is meant by the statement common stockholders havea residual claim on the issuing firms assets?
Since they are owners they are entitled to a pro rata share of any remaining value. The mechanisms for allocating profits and risks within a firm are complex and multi-faceted. Residual claimants, typically shareholders or owners, assume the fluctuations in profits after all fixed costs are covered. A simple graphical representation of risk and reward … Đọc tiếp