Question: Define each of the following terms: a. Proxy; proxy fight; takeover; preemptive right; classified stock; founders shares b. Closely held stock; publicly owned stock c.

Define each of the following terms:
a. Proxy; proxy fight; takeover; preemptive right; classified stock; founders’ shares
b. Closely held stock; publicly owned stock
c. Intrinsic value (P0); market price (P0)
d. Required rate of return, rs; expected rate of return, ^rs; actual, or realized, rate of return, rs
e. Capital gains yield; dividend yield; expected total return
f. Normal, or constant, growth; supernormal, or nonconstant, growth; zero growth stock
g. Preferred stock
h. Equilibrium; Efficient Markets Hypothesis (EMH); three forms of EMH
i. Purely rational behavior; animal spirits; herding instincts; anchoring; behavioral finance

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a A proxy is a document giving one person the authority to act for another typically the power to vote shares of common stock If earnings are poor and stockholders are dissatisfied an outside group ma... View full answer

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