The Voting Premium, Defined as the Total Vote Value (Value

question 95

Multiple Choice

The voting premium, defined as the total vote value (value of a vote times the number of votes) as a proportion of the firm's equity market value is only about 2 percent in the United States and 36 percent in Mexico, suggesting that in Mexico,

• A)dominant shareholders extract substantial private benefits of control.
• B)dominant shareholders overpay and thus fail to extract substantial private benefits.
• C)minority shareholders share in the private benefits of control.
• D)none of the above

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Definitions:

Classification

The organization of items into categories based on similarities or specific criteria.

Expiration Date

The date after which a product, such as food or medicine, is not recommended to be used because it may not be safe or effective.

Alphabetically

Organizing words or items according to the standard order of the letters in the alphabet.

Antagonist

A drug that blocks the actions of a receptor or its intended ligand.