Preferred shareholders' claims on assets and income of a firm come those of creditors those of common shareholders.
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A. B. C. D.B
The correct answer is B. After; but before.
Preferred shareholders have a higher claim on the assets and income of a firm than common shareholders but a lower claim than creditors.
Creditors have the highest priority when it comes to the claims on the assets and income of a firm. They have a legal right to be paid back their loan amount with interest, and if the firm goes bankrupt, they have priority over other claims on the firm's assets.
Preferred shareholders have a claim on the assets and income of a firm before common shareholders, but after creditors. Preferred shareholders usually have a fixed dividend rate that must be paid before any dividends can be paid to common shareholders. However, they do not have the same voting rights as common shareholders and do not have a say in the company's management.
Common shareholders have the lowest priority when it comes to claims on the assets and income of a firm. They are entitled to dividends only after creditors and preferred shareholders have been paid. Additionally, they have voting rights and can elect the board of directors and influence the company's policies and strategies.
In summary, preferred shareholders have a higher claim on the assets and income of a firm than common shareholders but a lower claim than creditors. Therefore, their claims come after those of creditors and before those of common shareholders. The correct answer is option B.