FINC 306 Exam 2 2026|2027 Advanced Practice
Questions and Answers with Complete A+ Solutions 100%
Correct!!!
cumulative voting - Correct Answer -Voting for directors where each shareholder is
allocated votes equal to the number of open spots multiplied by his or her number of shares
classes - Correct Answer -Different types of common stock for the same company, often
carrying different voting rights
annual meetings - Correct Answer -Meeting held once per year where shareholders vote on
directors and other proposals as well as ask managers questions
proxy - Correct Answer -A written authorization for someone else to vote your shares
proxy contest - Correct Answer -When two or more groups are competing to collect proxies
to prevail in a matter up for shareholder vote (such as election of directors)
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, preferred stock - Correct Answer -Stock with preference over common shares in payment
of dividends and in liquidation
Cumulative Perferred Stock - Correct Answer -Preferred stock where all missed preferred
dividends must be paid before any common dividends can be paid.
non-cumulative preferred stock - Correct Answer -Preferred stock where missed dividends
do not accumulate. Only the current dividend is owed before common dividends can be paid
equity cost of capital - Correct Answer -The expected rate of return available in the market
on other investments that have equivalent risk to the risk associated with the firm's shares
Dividend Yield - Correct Answer -The expected annual dividend of a stock divided by its
current price; the percentage return an investor expects to earn from the dividend paid by
the stock.
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Questions and Answers with Complete A+ Solutions 100%
Correct!!!
cumulative voting - Correct Answer -Voting for directors where each shareholder is
allocated votes equal to the number of open spots multiplied by his or her number of shares
classes - Correct Answer -Different types of common stock for the same company, often
carrying different voting rights
annual meetings - Correct Answer -Meeting held once per year where shareholders vote on
directors and other proposals as well as ask managers questions
proxy - Correct Answer -A written authorization for someone else to vote your shares
proxy contest - Correct Answer -When two or more groups are competing to collect proxies
to prevail in a matter up for shareholder vote (such as election of directors)
1|Page
, preferred stock - Correct Answer -Stock with preference over common shares in payment
of dividends and in liquidation
Cumulative Perferred Stock - Correct Answer -Preferred stock where all missed preferred
dividends must be paid before any common dividends can be paid.
non-cumulative preferred stock - Correct Answer -Preferred stock where missed dividends
do not accumulate. Only the current dividend is owed before common dividends can be paid
equity cost of capital - Correct Answer -The expected rate of return available in the market
on other investments that have equivalent risk to the risk associated with the firm's shares
Dividend Yield - Correct Answer -The expected annual dividend of a stock divided by its
current price; the percentage return an investor expects to earn from the dividend paid by
the stock.
2|Page
