<u>Common Stock</u> is more likely to be biased if book values are used in the calculation of WACC rather than market values.
<h3><u /></h3><h3><u>How Does Common Stock Work?</u></h3>
Security called common stock serves as a proxy for a company's ownership. Common stockholders decide on corporate policies and elect the board of directors. Usually, long-term returns from this type of stock ownership are higher.
Common shareholders, however, do not have any rights to a company's assets in the case of liquidation until all bondholders, preferred shareholders, and other debt holders have been fully compensated. On a company's balance sheet, common stock is listed under stockholders' equity.
<u>How Do I Cast a Ballot Using Common Stock at Corporate Meetings?</u>
Ordinary common shares typically have one vote per share, giving shareholders the ability to cast a ballot on corporate decisions, which are frequently made at a company's annual meeting of shareholders. If you're unable to vote in person, you can choose to have a representative vote on your behalf if you choose (along with others who cannot attend).
Votes may be taken on matters like whether to merge with or purchase a business, elect board members, or consent to dividends or stock splits.
Learn more about the WACC with the help of the given link:
brainly.com/question/14223809
#SPJ4
