Voting Common Stock and Voting Preferred Stock (With a Preference

question 112

Short Answer

Voting common stock and voting preferred stock (with a preference on dividends) would be treated as ____________________ class(es) of stock.

---

Definitions:

Law of Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the marginal utility that person derives from consuming each additional unit.

Ability-To-Pay Principle

The idea that those who have greater income (or wealth) should pay a greater proportion of it as taxes than those who have less income (or wealth).

Marginal Cost

the additional cost incurred to produce one more unit of a good or service.

Marginal Benefit

The added joy or utility one achieves by consuming an additional unit of a product or service.