Voting Rights some companies, such as Readers Digest have created classes of stock with no voting rights

Question:

Voting Rights some companies, such as Reader’s Digest have created classes of stock with no voting rights at all why would investors buy such stock?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

See More Books

Question Posted: Apr 28, 2011 02:29 AM

See More Questions

Why might some stockholders be inclined to buy preferred stock rather than common stock? What are the advantages of investing in preferred stock?
Some companies, such as Google, have created classes of stock with little or no voting rights at all. Why would investors buy such stock?
Why did some companies backdate stock option grants in the US prior to 2002? What changed in 2002?
Express the following directions by two other means; set up and fill in a table with three columns, one for bearing, one for azimuthN (AzimN), and one for azimuths (Azims): a. N 3040'E b. AzimN...
The following angles are given in radians. Convert them to degrees: /6, 0.70, 1.5, 5.
McQueen Motor Company manufactures automobiles. During September 2020, the company purchased 5,000 head lamps at a cost of $15 per lamp. Fifty of these lamps were used to replace the head lamps in...
FIXED S. ARIABLE ANNUITIES. What are the main differences between fixed and variable annuities? Which type is more appropriate for someone who is 60 years old and close to retirement?LO1
Bellvue Company issues 10%, five-year bonds, on December 31, 2010, with a par value of $100,000 and semiannual interest payments. Use the following straight-line bond amortization table and prepare...
Team Sports has 5.9 million shares of common stock outstanding, 3.9 million shares of preferred stock outstanding, and 39 thousand bonds. If the common shares are selling for $4.90 per share, the...
Joey, a public limited company, operates in the media sector. Joey has investments in two companies. The draft statements of financial position at 30 November 20X4 are as follows: The following...
Voting Rights some companies, such as Readers Digest have created classes of stock with no voting rights at all why would investors buy such stock?
Two-Stage Dividend Growth Model one of the assumptions of the two-stage growth model is that the dividends drop immediately from the high growth rate to the perpetual growth rate. What do you think...
Derive the simplified expression for gross oxygen non stoichiometry in NdBaFe 2 O 5+ as a function of p O2 assuming that Fe 3+ defines the point of integer valence.
Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,200 cases of Oktoberfest-style beer from a German supplier for 264,000 euros. Relevant U.S. dollar exchange rates for the euro...
Finding Confidence Intervals. In Exercises 9-16, assume that each sample is a simple random sample obtained from a population with a normal distribution. Body Temperature Data Set 5 "Body...
19 Part 2 of 2 1.25 points Skipped Required information Problem 6-4A & 6-5A (Algo) [The following information applies to the questions displayed below.] Gerald Utsey earned $48,400 in 2021 for a...
Describe equilibrium constants with words and equations. is the ratio of the concentrations of products to the concentration of reactants present in a reaction mixture when chemical equilibrium is...
Pronghorn Inc. acquired 20% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $1,133,000 for 51,500 shares, and is equal to 20% of Gregson's carrying...
What is liquidity risk? How can it be managed on the liability side of the balance sheet? What can be done on the asset side of the balance sheet to ease illiquidity pressures? Appendix
Will the prediction interval always be wider than the estimation interval for the same value of the independent variable? Briefly explain.
Provide a real-world example of a price ceiling. How could the price ceiling result in a shortage?
Loki, Inc., and Thor, Inc., have entered into a stock-swap merger agreement whereby Loki will pay a 40% premium over Thors premerger price. If Thors premerger price per share was $40 and Lokis was...
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $35 per share and LE is trading for $25 per share, implying a premerger value of LE of $4 billion. If the...
Lets reconsider part (b) of Problem 1. The actual premium that your company will pay for TargetCo when it completes the transaction will not be 20%, because on the announcement the target price will...
How do warehouses and distribution centers differ? What is cross-docking and why might a company choose to cross-dock a product? What kinds of products can be delivered electronically? What kinds...
Strawberry Inc. has historically been an all-equity firm. The analyst expects EBIT to be $1.5B in perpetuity starting one year from now. The cost of equity for the company is 11.5% and the tax rate...
Guzman company received a 60- day, 5 % note for 54,000 dated July 12 from a customer on account. Determine the due date on note. Determine the maturity value of the note and journalize the entry of...

Voting Rights some companies, such as Readers Digest have created classes of stock with no voting rights

Question:

Step by Step Answer:

In US corporate democracy many corporate have more than on ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions