Question
Which of the following statements is incorrect? Select one: a.The preemptive right is less important to the stockholders of publicly owned company than to those
Which of the following statements is incorrect?
Select one:
a.The preemptive right is less important to the stockholders of publicly owned company than to those of closely held firms.
b.A preferred stock is similar to a bond because it has a par value and a fixed dividend payment that must be paid after dividends are paid on the common stock.
c.A perpetual bond is similar to a no-growth common stock because both have indefinite lives.
d.Investor A has a 2-year investment horizon while investor B usually holds stock for 10 years.If these two investors expect the same future dividend stream and they agree on the stock's riskiness, then investor A and B will be willing to pay the same price for the same company stock.
e.A perpetual bond is similar to a preferred stock because both have indefinite lives.
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