Under U.S. Bankruptcy code, claims against the firm are prioritized al

Under U.S. Bankruptcy code, claims against the firm are prioritized along the lines of secured creditors followed in order by:

A) preferred stock holders, common stock holders, and then unsecured creditors after all others have been compensated.
B) unsecured creditors, preferred stock holders, and then common stock holders after all others have been compensated.
C) preferred stock holders, unsecured creditors, and then common stock holders after all others have been compensated.
D) common stock holders, preferred stock holders, and then unsecured creditors after all others have been compensated.

ANSWER

B