Common stock holders may receive compensation for their


1. stockholders in a given corporation generally have voting rights that allow them to

a. elect the firm's Board of directors

b. vote on special issues facing the firm

c. A and B

d. none of the above

2. common stock holders may receive compensation for their investment in the form of

A. dividend payment

B. capital gains when the stock is sold

C. interest earnings

D. A and B and C

E. A and B

3 The common stock of a corporation may be

A. privately owned by an individual

B. closely owned by a small group of investors, such as family.

C. Publicly owned by a broad of investors.

D. B and C

E. A and B and C

4. Each of the following is a factor that may influence the equilibrium interest rate in the economy Except

A. The number of common stock shares which a given firm has outstanding.

B. The inflation rate

C. The " liquidity preference" of investors for short term vs long term securities

D. The risk level associated with a given security.

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Financial Management: Common stock holders may receive compensation for their
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