1.Which of the following statements regarding deferred shares is not correct?

a.Deferred shares are the last in line in credit or bankruptcy proceedings, following preferred and common shareholders

b.Deferred shares can be awarded to venture capital and other private investor groups as part of a long-term investment in a company

c.Deferred shares may be issued to company founders that restricts their receipt of dividends until dividends have been distributed to all other classes of shareholder

d.None of the above

2.The voting system for common shares that gives minority shareholders the most representation on the board of directors is:

a.majority voting

b.cumulative voting

c.statutory voting

d.proxy voting

3.A R500 par-value convertible preference share is selling at R520. If the conversion ratio is 20, what is the conversion price?

a.R19

b.R20

c.R25

d.R26

4.A convertible preferred shares is priced at R100, with a conversion ratio of five. If the common shares move to R25 per share, what would the preferred shareholders return be if they converted now?

a.-75%

b.5%

c.25%

d.Cannot be determined from the information provided