If a Corporation Has Two Classes of Common Stock, What

question 15

Multiple Choice

If a corporation has two classes of common stock, what is typically unique about the second or class B common stock?

• A)It has superior voting rights.
• B)It has inferior dividend payments.
• C)It has no voting rights.
• D)It has superior dividend payments.

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Definitions:

Interest Coverage Ratio

A financial metric used to determine how easily a company can pay interest on outstanding debt with its current earnings before interest and taxes.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets.

Operating Activities

Those activities directly related to the production, sale, and delivery of a company's products or services, as reflected in its income statement.

Current Accounts

Balances held in checking accounts that are typically used for the day-to-day money transactions and management.