Vhich of the following is FALSE regarding common stock? The constant growth model assumes that dividends are expected to grow at a relatively constant rate forever. Common stockholders have the right to share proportionally in any dividends that are declared. Some companies have two classes of common stock, with super-voting shares held by the public investors. Common stockholders have the right to share proportionally in any remaining assets during liquidation. Not all companies pay dividends to the common stockholders.

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 4MC: d. (1) What are the two primary ways companies raise common equity? (2) Why is there a cost...
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Which of the following is FALSE regarding common stock?
()The constant growth model assumes that dividends are expected to grow at a
relatively constant rate forever.
Common stockholders have the right to share proportionally in any dividends
that are declared.
Some companies have two classes of common stock, with super-voting shares
held by the public investors.
Common stockholders have the right to share proportionally in any remaining
assets during liquidation.
ONot all companies pay dividends to the common stockholders.
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Transcribed Image Text:Which of the following is FALSE regarding common stock? ()The constant growth model assumes that dividends are expected to grow at a relatively constant rate forever. Common stockholders have the right to share proportionally in any dividends that are declared. Some companies have two classes of common stock, with super-voting shares held by the public investors. Common stockholders have the right to share proportionally in any remaining assets during liquidation. ONot all companies pay dividends to the common stockholders. Page 14 of 30 Previous Page Next Page
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