In a Dual-Class Recapitalization (Or 'Recap'), a Firm

question 1

Multiple Choice

In a dual-class recapitalization (or 'recap') , a firm

• A)creates two classes of managers-operational and financial.
• B)establishes two classes of securities-debt and equity.
• C)establishes two classes of debt securities-senior and subordinated.
• D)creates a second class of common stock that has limited voting rights and generally a preferential claim to the firm's cash flows.

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Definitions:

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