Which of the Following Statements Is Correct

question 46

Multiple Choice

Which of the following statements is correct?

• A)Investors favor purchasing preferred shares.
• B)All outstanding shares are eligible to vote for the board of directors.
• C)The value of preferred shares can be higher or lower than that of common shares.
• D)Common shares always have voting rights.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.