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Multiple Choice
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1

________________ have a claim to the residual income of the firm.
A)Bondholders
B)Preferred Stockholders
C)Common Stockholders
D)none of the above
2

_______________ voting elects a member of the board of directors of a firm with a 51% vote.
A)Cumulative
B)Preferred
C)Majority
D)none of the above
3

Which of the following types of voting includes minority shareholders?
A)Cumulative
B)Preferred
C)Majority
D)none of the above
4

If a corporate charter says that current stockholders must be given the first option to purchase new stock, then that is a __________ rights offering.
A)Pre-emptive
B)Rights-on
C)Ex-rights
D)none of the above
5

When a rights offering is announced, the stock initially trades:
A)Ex-rights
B)Rights-on
C)No-rights
D)Pre-emptive right
6

_____________ makes a firm unattractive in case of a takeover bid.
A)Rights offering
B)Greenmail
C)Poison Pill
D)Black Knight
7

________________ are certificates that have a legal claim on an ownership interest in a foreign company's stock.
A)Stock certificates
B)Preferred stock
C)Bond indentures
D)American Depository Receipts
8

Securities that have a mandatory dividend are:
A)bonds
B)preferred stock
C)common stock
D)none of the above
9

One provision of preferred stock is that they can participate in the firm's yield during good years. That provision is ________________.
A)the call provision
B)cumulative dividends
C)the participation provision
D)the conversion provision
10

Which of the following have ownership interest in the firm?
A)Common stockholders
B)Preferred stockholders
C)Bondholders
D)All of the above







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