Fall 2018s Fin 338 Name Quiz s 1. Companies can issue different classes of common stock. Which of the following statements concerning stock classes is CORRECT? a. All common stocks, regardless of class, must have the same voting rights. b. All firms have several classes of common stock. e. All common stock, regardless of class, must pay the same dividend. d. Some class or classes of common stock are entitled to more votes per share than other classes. e. All common stocks fall into one of three classes: A, B, and C 2. The preemptive right gives current stockholders the right to purchase, on a pro rata basis, tect current stockholders against any new shares issued by the firm. This right helps prot both dilution of control and dilution of value. a. True b. False Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth rate is expected to be constant at 25% for 2 years, after which free cash flows are expected to grow at a rate of 6% forever. Its weighted average cost of capital WACC is 12%. Find Huxley Building Supplies' horizon value and today's value of operations. 3