If a Firm Has Class a and Class B Common

question 80

Multiple Choice

If a firm has class A and class B common stock outstanding, it means that ________.

• A) each class receives a different dividend
• B) the par value of each class is different
• C) the dividend paid to one of the classes is tax deductible by the corporation
• D) one of the classes is probably nonvoting stock

---

Definitions:

Predict

To declare or indicate in advance; especially, to foretell based on observation, experience, or scientific reasoning.

Score

A numerical or categorical measure that represents an individual's performance, achievement, or status on a particular task or assessment.

Effect Size

A quantitative measure of the magnitude of the experimental effect, indicating how large the difference is between groups.

Association

A connection or relationship between two or more variables, where changes in one variable relate to changes in another.