The answer to your question is true
Bonds are a form of a debt captial
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:
(a) $ 46.43
(b) $ 50.00
Explanation:
In 1 year the dividend is:
D1 = $2
In 2 years, the dividend is:
D2 = $4
(a)
Now,
⇒ 

($)
In 2 years, the price will be:
⇒ 

($)
Today's price will be:
⇒ 

($)
(b)
In 1 year, the price will be:
⇒ 

($)