Question
A firm has two classes of common stock outstanding: Class A, which carries voting ritghts of 10 votes per share but receives no dividends (ever),
A firm has two classes of common stock outstanding: Class A, which carries voting ritghts of 10 votes per share but receives no dividends (ever), and Class B, which carries voting rights of 1 vote per share and pays dividends whenever they are declared by the board. Which would you be willing to pay more for and why?
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I will be willing to pay more for class A The reason is stated as follows 1 Fo...
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
