Which of the following statements is CORRECT? a

Finance Dec 10, 2020

Which of the following statements is CORRECT? a. If Amazon and eBay both have two classes of common stock, Amazon's class A shares and class B shares do not necessarily have to have the same characteristics of eBay's class A and class B shares. Ob. Most corporations have at least two classes of common stock. c. The preemptive right prevents firms from allowing its shareholders to maintain proportional ownership when it issues new shares. Od. The constant dividend growth model should be used for firms that are expected to experience supernormal growth. Oe. The constant dividend growth model can only be used if rs.

Expert Solution

All statements are incorrect except statement a as it is not necessary that class A shares or class B shares of shares in one co is same as class A shares or class B shares of shares in other co.

Option a is correct.

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