Answer:
Have priority in the purchase of any newly issued shares
Explanation:
Preemptive right is the right given to existing shareholders to maintain the proportion of their investment by buying a proportionate number of shares in any future sales of share.
The main essence of this is to ensure that their ownership interest is not diluted as more shares are issued and new investors come in.
In a preemptive share arrangement , consideration is given to existing shareholders ahead of any other person or entity .
Answer:
200
Explanation:
The labor force in an economy is composed of all adults able-bodied individuals who are employed or actively seeking employment. Employed people are those engaged in economic or income-generating activities. Unemployed are jobless individuals who are actively seeking work.
In Freelandia, labor force participation will be composed of the employed and the unemployed people. As per the definition of the labor force, children will not be included as they are not adults. Students and retired people are not seeking employment; hence should not be in the labor force. Therefore, the labor force will be 190 plus 10, which is 200.
Answer:
Detailed step-wise solution given in the table attached.
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Answer:
$26.52.
Explanation:
We use the MM Proposition I formula as follows:
VL = VU + (Tc * D) ....................................................... (1)
Where;
VL = Value of a levered firm, i.e. X = ?
VU = Value of an unlevered firm, i.e. Y = $24
Tc = Tax rate = 21%
D = value of debt = $12
Note: The US 2020 corporate tax rate is used as the tax rate since no tax rate is given in the question.
Substituting the values into equation (1), we have:
VL = $24 + (21% * $12) = $24 + $2.52 = $26.52.
Therefore, According to MM Proposition I, the stock price for Firm X is closest to $26.52.