1. Which one of the following is a false statement?
A. Common stock has No maturity date
B. Proxy voting means the grant of authority by a shareholder to vote
C. Dividends are not tax deductible for firm
D. A firm can go bankrupt for not declaring dividends
E. Different classes of stock are given different voting rights.
2. Which of the following is not a characteristic of preferred stock?
A. Preferred dividends are assumed to be infinite in duration
B. Common stock dividends must be paid before preferred dividends
C. Preferred stock does not mature like a bond
D. Preferred stock is usually non- voting