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

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Definitions:

Landslides

Rapid movements of rock and soil down a slope due to gravity.

Groundwater

Water that occupies the pore spaces and fractures in soil, sand, and rock, located beneath the Earth’s surface.

Uranium

A heavy radioactive metallic element used as fuel in nuclear reactors and as a component in nuclear weapons.

Natural Gas

Hydrocarbons that exist as gas or vapor at ordinary temperatures and pressures.