Financial Management theory practice questions, Exercises of Financial Theory

Download Financial Management theory practice questions and more Exercises Financial Theory in PDF only on Docsity! Stocks and their valuation - theories Theories: True/False 1. ) The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold. ANS: False 2.) Classified stock differentiates different classes of common stock, and using it is one way companies can meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control. ANS: True 3.) 5. Founders' shares are a type of classified stock where the shares are owned by the firm's founders, and they generally have more votes per share than the other classes of common stock. ANS: True