Which of the Following Statements Is CORRECT

question 19

Multiple Choice

Which of the following statements is CORRECT?

• A) If a company has two classes of common stock, Class A and Class B, the stocks may pay different dividends, but under all state charters the two classes must have the same voting rights.
• B) The preemptive right gives stockholders the right to approve or disapprove of a merger between their company and some other company.
• C) The preemptive right is a provision in the corporate charter that gives common stockholders the right to purchase (on a pro rata basis) new issues of the firm's common stock.
• D) The stock valuation model, P0 = D1/(rs - g), cannot be used for firms that have negative growth rates.
• E) The stock valuation model, P0 = D1/(rs - g), can be used only for firms whose growth rates exceed their required returns.

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Definitions:

Acquired Needs Theory

A motivational theory that suggests individuals are driven by their desire to fulfill specific needs acquired over time, such as achievement, affiliation, and power.

Two-Factor Theory

A psychological theory proposed by Frederick Herzberg that explains motivation in the workplace, suggesting that there are factors that cause job satisfaction and factors that cause job dissatisfaction, acting independently.

Job Dissatisfaction

The feeling of unhappiness or discontentment an employee experiences regarding their job, often due to factors like working conditions, remuneration, or lack of recognition.

Comparable Worth

The principle that jobs of equal value to an organization should receive similar pay, regardless of the nature of the job or who holds it.