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 stock valuation model, P0 = D1/(rs? g), cannot be used for firms that have negative growth rates.
D. The stock valuation model, P0 = D1/(rs? g), can be used only for firms whose growth rates exceed their required returns.
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.
Answer: B
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According to the product life cycle theory, comparative advantage
a. always remains in the country where the product is first introduced to the market. b. increases as government tariffs and quotas are imposed on imports. c. may shift from the home country to a foreign country as the product matures. d. is the result of lower wages in the home country than in other countries.
Answer the following statements true (T) or false (F)
Individuals accomplish more together than they can accomplish individuals due to synergy.
A director or officer is liable to the corporation or its shareholders for honest mistakes of judgment and bad business decisions
Indicate whether the statement is true or false
Supply chain execution systems provide all of the following functions except:
A) generating demand forecasts for products. B) tracking the flow of finished goods. C) managing materials. D) managing warehouse operations. E) tracking financial information.