grant of authority by a shareholder allowing for another individual to vote his/her shares is a A) preferred stock B) proxy specialist D) cumulative voting right E) dual class stock C) Which of the following typically applies to common stock but NOT to preferred stock? A) Par value B) Dividend yield Legally considered as equity in the firm D) Voting rights E) The dividends are a tax-deductible expense 6. Preferred stock: I. generally has a fixed dividend. II. generally has a dividend that increases annually. III. receives preference in bankruptcy over bonds. IV. receives preference in bankruptcy over common stock. A) I only B) I and III only C) I and IV only D) II and III only E) II and IV only Rank the following decision rules from worst to best in terms of their overall usefulness in capital budgeting analysis. I. NPV II. Payback III. IRR A) II, III, I B) II, I, III C III, I, II D) I, III, II E)