Which one of the following is the reason for paying a different price for different classes of shares in the case of a takeover?
A)Prices depend on the tax treatment of each class.
B)Prices depend on the dividend yield offered by the class.
C)Prices depend on the voting rights of the shares.
D)Prices depend on the floating of shares.

Question

Quizplus · Accepted Answer

The reason for paying a different price for different classes of shares in the case of a takeover is because prices depend on the voting rights of the shares. Different classes of shares may have different voting powers, and therefore, the price offered for each class of share will depend on the level of control and influence that comes with those shares.

Which One of the Following Is the Reason for Paying