Which of the following statements is correct?
A) A tracking, or target, stock is the same as the stock of an independent stand-alone company.
B) If a company has dual-class shares, Class A and Class B, the shares may pay different dividends, but they must have the same voting rights.
C) The preemptive right is a provision in the article of incorporation that gives common shareholders the right to purchase (on a pro rata basis) new issues of the firm's common stock.
D) The stock valuation model, P0 = D1/(rs - g) , cannot be used for firms that have negative growth rates.
Correct Answer:
Verified
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