Which of the Following Statements Is CORRECT

question 59

Multiple Choice

Which of the following statements is CORRECT?

• A) the preemptive right gives stockholders the right to approve or disapprove of a merger between their company and some other company.
• B) 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.
• C) the free cash flow valuation model, vops =fcf1/(wacc σ g), cannot be used for firms that have negative growth rates.
• D) the free cash flow valuation model, vops = fcf1/(wacc σ g), can be used only for firms whose growth rates exceed their wacc.
• E) 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.

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Definitions:

Psychoanalytic Perspectives

A set of theories and therapeutic approaches in psychology that emphasize the influence of the unconscious mind on behavior, originating with the work of Sigmund Freud.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual.

Id

Part of the personality present at birth and completely unconscious.

Latin

A classical language originating from the Italic branch of the Indo-European languages, historically used as the language of ancient Rome and its empire.