Different Classes of Stocks Are Usually Issued in Order to

question 19

Multiple Choice

Different classes of stocks are usually issued in order to

• A)maintain ownership control, by holding the class of stock with greater voting rights.
• B)pay less dividends to different classes of stock.
• C)extract perquisites without the other class of stockholders knowing.
• D)maintain ownership control by holding the class of stock with greater voting rights and pay less dividends to different classes of stock.

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Definitions:

Cash Flows

The net amount of cash being transferred into and out of a business, essential for assessing its financial health.

Principle Due

refers to the outstanding balance of the principal amount of a loan or mortgage that needs to be paid.

Loan Terms

The conditions and agreements under which a loan will be made, including the interest rate, repayment schedule, and duration of the loan.

Growing Annuity

A series of escalating payments or receipts over a period, where each payment grows by a fixed percentage rate.