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Control Over a Firm Permits the Possibility of Changing the Future

Question 40

Multiple Choice

Control over a firm permits the possibility of changing the future cash flows. What is the likely result of a high level of control on share price?


A) There is little effect.
B) A share may be more highly valued by the controlling shareholder.
C) Changes in share value are delayed.
D) A share may be valued lower by the controlling shareholder.

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