Ask Question
BusinessBusiness
13 January, 07:43

The purchase of common stock gives the holder (a) rights to residual cash flows (b) access to monthly Board of Director's meetings (c) rights to a contractually set coupon (d) access to the CEO to assist in decision-making (e) rights to a good job with benefits

+5
Answers (1)
  1. 13 January, 08:56
    0
    The correct option is A, rights to residual cash flows

    Explanation:

    Residual cash flows in this sense refers to cash left after bondholders interests have paid as well as the preferred shareholders's dividends.

    The equity shareholders are the ultimate bearers of risk in a company, hence they are seen as the real owners of corporations in that they queue behind other providers of finance for dividends payments.

    Even sometimes, they are instead of receiving cash dividends availed script dividend or stock dividend where additional shares are issued to shareholders in lieu of cash dividend payments.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The purchase of common stock gives the holder (a) rights to residual cash flows (b) access to monthly Board of Director's meetings (c) ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Kay runs a business and her target customer population is the twenty - to forty-five-year-olds. because she wants her employees to be "in tune" with the younger crowd, she requires all of her front staff to quit or retire from her company at the age
Answers (1)
If a british student pays her way to attend harvard university, her actions will:
Answers (1)
Time deposits are often referred to as ...
Answers (1)
The majority of private sector employment in the u. s. economy is in the
Answers (1)
What happens if you fail to pay your annual taxes? Ayou will simply have to pay some penalty fees Byou can file your return the next year Cyou will have to pay penalty fees or face imprisonment, depending on the severity of nonpayment Dyou will have
Answers (2)
New Questions in Business
On December 29, 2019, Patel Products, Inc., sells a delivery van that cost $20,000. After recording the entry to bring the accumulated depreciation up-to-date, the delivery van had accumulated depreciation of $18,000.
Answers (1)
Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 60,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date.
Answers (1)
Altman Corporation is considering investing $75,000 in a new piece of machinery that will generate net annual cash flows of $25,000 each year for the next 5 years. The machine has a salvage value of $8,000 at the end of its 5 year useful life.
No Answers
External users of financial information: Multiple Choice Are those individuals involved in managing and operating the company. Are not directly involved in operating the company. Make operating decisions for a company.
Answers (2)
Bram buys a bulldozer from construction equipment corporation, which he leases to earth movers, inc. in this situation, the lessee is
Answers (1)
Home » Business » The purchase of common stock gives the holder (a) rights to residual cash flows (b) access to monthly Board of Director's meetings (c) rights to a contractually set coupon (d) access to the CEO to assist in decision-making (e) rights to a good job
Sign Up Forgot Password?