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Brrunno [24]
3 years ago
7

If a company raises money by issuing new stocks, a current shareholder has the right to purchase new shares on a pro rata basis

(can keep the same percentage interest in the company). This provision in a companyâs bylaws is called the:
a. Proxy fight
b· IPO Provision
c. percentage right
d. preemptive right
Business
2 answers:
Evgen [1.6K]3 years ago
6 0

Answer:

The correct answer is letter "D": preemptive right.

Explanation:

A Preemptive Right allows select shareholders to purchase newly issued shares in their corporation before the general public. The situation arises when the company issues more shares on top of the issued at the <em>Initial Public Offering</em> (IPO). Therefore, as there will be more outstanding shares the ownership percentage of the stakeholder would be decreased.

The preemptive right allows those shareholders to purchase the recently issued shares before the public in an attempt of keeping their same ownership percentage.

Mumz [18]3 years ago
5 0

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.

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​Electric, Inc. was incorporated on January​ 1, 2016. Electric issued 7 comma 000 shares of common stock and 1 comma 200 shares
marta [7]

Answer:

$48,000

Explanation:

The computation of the total amount paid to the preferred shareholder is shown below:

= Number of preferred stock shares × par value × dividend rate × number of years

= 1,200 shares × $100 × 10% × 4 years

= $48,000

Simply we multiplied with the number of preferred stock with the par value, its dividend rate and the time period so that the correct value can come

All other information which is given is not relevant. Hence, ignored it

7 0
3 years ago
A month ago, you bought a one-year bond with a value of $100 that pays a fixed interest rate of 5 percent per year. The interest
My name is Ann [436]

Answer:

less desirable to other investors

Explanation:

<u>Given</u>: Current fixed coupon rate 5%

           Market rate of interest 5%

           New Market Rate of Interest 6%

Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:

B_{0}\ = \frac{C}{(1\ +\ YTM)^{1} }  \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +....+\ \frac{C}{(1\ +\ YTM)^{n} }\ +\ \frac{RV}{(1\ +\ YTM)^{n} }

wherein, C = Coupon rate of interest

         YTM = Market Rate of Interest or interest rate in the economy or investor's expectation

                n= Years to maturity

             RV = Redemption value

In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.

Thus, now the bond would be less desirable to other investors.

3 0
3 years ago
________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want thr
Thepotemich [5.8K]

Answer:

The correct answer is C

Explanation:

Marketing is the one which is concerned with the management as well as the study of exchange relationship. It is the process of business of establishing the relationship with the customers through exchange the value.

As it is used to attract the customers, the primary components of business commerce and management.

So, marketing is the process of managerial and social through which the groups and the individuals obtain what they want and need by exchanging and creating products and value with others.

3 0
3 years ago
A budget is a system that _____.
never [62]

Answer:

A.

keeps track of money that is earned and spent

Explanation:

B.

helps people make more money is incorrect, because a budget is not always a good thing- I can budget 7 million dollars for a new house, but that doesn't necessarily change the fact I won't be able to pay it off ever.

C.

moves money from a checking account to a savings account-

this is not always the case, and a budget itself won't move the money, but this may be an aspect of a budget.

D.

helps automatically pay bills-

It helps pay bills, just not automatically.

Therefore, by the process of elimination, the answer is A.

3 0
3 years ago
Read 2 more answers
What can you tell me about Google's Supply Chain Management ?(10 Marks)
Fiesta28 [93]

Answer:

The answer is below

Explanation:

With suppliers across over 60 countries all around the globe, Google continues to organize its supply chain quite efficiently.

Hence, Google’s supply chain management can be summarized in the following key points:

1. Getting reliable suppliers: Google ensures they work with trustworthy suppliers by conducting robust appraisal based on a variety of factors, such as country-specific risk, product-specific risk, suppliers' past records, supplier relationships, etc.

2. Suppliers code of conducting business: this involves social and environmental responsibility and as well as safe working conditions for suppliers' employees.

3. Effective Management of Suppliers Diversity: Google identifies and supports all forms of suppliers' community, regardless of countries, gender, age, disability status, or even sexual orientation of the suppliers. This implies that Google keeps respecting and valuing the contribution of every associated with its supply chain in any capacity.

4. Promoting Tools and Techniques to Supports Suppliers: Google prioritizes training and energy conservations, cost reductions, and product enhancement, for its suppliers, which contribute to easy access to clean and renewable energy.

6 0
2 years ago
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