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Business, 04.11.2019 22:31 tydukes10

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 βˆ’ g), cannot be used for firms that have negative growth rates. d. the stock valuation model, p0 = d1/(rs βˆ’ 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.

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