True about common stock

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1. Which of the following are true about common stock?

The capital gain yield is related to the appreciation (or depreciation) of the price of the stock.

Different classes of shares could provide different voting rights

Gordon's growth model works only if the rate of growth of dividends is positive

Preempive rights protect the management of the firm from being removed by the stock holders.

2. A restaurant invests $240,000 in a new food truck for mobile lunch sales. The truck will have a capital cost allowance (CCA) rate of 20%. If the opportunity cost of capital is 8.5%, and the restaurant's marginal tax rate is 30%, what is the present value of the CCA tax shield?

A. $48,000

B. $48,547

C. $35,938

D. $14,400

E. $50,526

Reference no: EM132071732

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