Answer:
d. preemptive right
Explanation:
Preemptive rights refers to the clause that is included in a merger agreement or security that allows an investor to buy a proportionate number of shares to be issued in the future in order to protects him from losing his percentage ownership of a company.
The aim a preemptive right is to avoid a situation whereby the management of the company take over the control of the company by issuing and buying extra shares of the corporation to themselves. It basically aims to prevent the dilution of the value of stockholders.
Answer:
Is there any multiple choice?
Answer:
If the company is going to use the machine for 20 days, it is cheaper to lease it.
Explanation:
Giving the following information:
The cost to purchase is $10,000 plus $100 per day to operate or $500 per day to lease
<u>First, we need to structure the total cost formula for each option:</u>
Purchase= 10,000 + 100x
x= number of days
Lease= 500x
x= number of days
<u>Now, we can determine the total cost for 20 days:</u>
Purchase= 10,000 + 100*20= $12,000
Lease= 500*20= $10,000
If the company is going to use the machine for 20 days, it is cheaper to lease it.
Answer:
A. Growth Stock
Explanation:
Stocks are divided into classes based upon their features with respect to the rights they carry. Usually stocks are of two classes:
- Common Stock
- Preferred Stock
While the former carry voting rights and avail dividends as per the profitability of the company, the latter carry preferential rights with respect to principal repayment in the event of winding up apart from carrying a fixed rate of dividend which must be paid periodically.
Growth Stocks refer to those stocks which yield higher rate of growth than average market rate but don't usually carry a right to dividend. Growth stocks relate to capital appreciation.
Answer:
The income must be $43,125 to warrant starting the business
Explanation:
Given that:
- The company would require $375,000 of assets, and it would be financed entirely with common stock, it is the equity
The formula of ROE : Net income / Equity
Therefore, Net income = ROE * Equity
= 11.5% * $375,000
= $43,125
So the income must be $43,125 to warrant starting the business
Hope it will find you well.