In a dual-class recapitalization (or ‘recap’), a firm a. creates tw

In a dual-class recapitalization (or ‘recap’), a firm

a. creates two classes of managers—operational and financial.
b. establishes two classes of securities—debt and equity.
c. establishes two classes of debt securities—senior and subordinated.
d. creates a second class of common stock that has limited voting rights and generally a preferential claim to the firm’s cash flows.

ANSWER

D