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Question 14 (2.18 points) Which one of the following is a false statement? a) Investors can sue managers for nonpayment of dividends. Ob) Dividends on

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Question 14 (2.18 points) Which one of the following is a false statement? a) Investors can sue managers for nonpayment of dividends. Ob) Dividends on common stocks can be paid only after dividends on preferred stocks are paid to stockholders. OC) Interest payments on debt are considered tax-deductible expenses for a company. Common stock ranks after bonds in terms of the priority of its claim to the assets of the firm in the event of corporate bankruptcy. e) Preferred stocks usually do not carry voting rights. Question 15 (2.18 points) Four stocks have share prices of $50, $75, $30, and $100 with total market values of $400 million, $350 million $55 million, and $150 million, respectively. If you were to construct a price-weighted index of the four stocks, what would be the index value? a) 51.67 b) 63.75 OC) 85.00 e d) 238.75

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