38.

Which of the following statements is CORRECT? O a. The preemptive right is a provision in the corporate charter that gives common stockholders the right to purchase (on a pro rata basis) new issues of the firm's common stock O b. The stock valuation model, Po=D1A-80cannot be used for firms that have negative growth rates O c. The preemptive right gives stockholders the right to approve or disapprove of a merger between their company and some other company. d. The stock valuation model, Po-Des-el can be used only for firms whose growth rates exceed their required returns. elf a company has two classes of common stock. Class A and Class B, then the stocks may pay different dividends, but under all state charters the two classes must have the same voting rights