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 free cash flow valuation model, Vops =FCF1/(WACC ? g), cannot be used for firms that have negative growth rates.
D. The free cash flow valuation model, Vops = FCF1/(WACC ? g), can be used only for firms whose growth rates exceed their WACC.
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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A major manufacturer of men's shaving products has developed a prototype of an electric shaver featuring a vacuum attachment to capture virtually all hair. It's targeted to men who have facial hair - beards, mustaches, or goatees who like a trimmed appearance but dislike all the hairs that fall into the sink or bathroom counter top. The engineers create several prototypes and have members of their marketing research team gauge consumer response to the new product by conducting personal interviews with men who have facial hair. The company hopes that if the product is favorably received, the new product will be more successful in the marketplace. This is an example of:
a. ?concept testing b. screening c. ?test marketing d. ?commercialization
An auditor does not express an opinion on the fairness of the financial statements when issuing a standard compilation report
a. True b. False Indicate whether the statement is true or false
John D. Rockefeller Jr. was widely attacked when ________
A) a dozen women and small children were killed in the Ludlow massacre B) Johnson & Johnson's products were sabotaged, resulting in the murder of company customers C) the Creel Committee was formed to channel patriotic sentiments of Americans in support of the U.S. role in the war D) he spoke out against the marriage of Khloe Kardashian and Lamar Odom
Source documents include:
a. Invoices. b. Receipts. c. Checks. d. All items listed above are source documents.