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lisabon 2012 [21]
4 years ago
9

The preemptive right is important to shareholders because it a. allows managers to buy additional shares below the current marke

t price. b. is included in every corporate charter. c. protects the current shareholders against a dilution of their ownership interests. d. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. e. will result in higher dividends per share.
Business
2 answers:
katrin2010 [14]4 years ago
8 0

Answer:

c. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Preemtive rights of a shareholder is the right of a current shareholder to buy a certain amount of future shares that will be issued by the company. For example if an individual owns 10,000 shares in a company, and the company want to issue 100,000 more shares. The shareholder may have a right to by extra 10,000 shares of the new issue.

This guarantees that old shareholder's ownership interests are not diluted.

love history [14]4 years ago
6 0

Answer:

C. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Preemptive rights are rights given to shareholders in an organization allowing them to buy additional shares in any future issue in order to maintain their percentage ownership, before the shares are available to the general public. It guards against dilution or decrease in a shareholders stake or ownership interest buy allowing them buy more shares for future issues before it is available for the general public to own shares. In doing so, shareholders avoid involuntary dilution.

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Which of the following scenarios could lower a firm’s demand for labor?
Bess [88]

Answer: Option A, C, D, and E

Explanation:

From the question given all options except option B are factors that can lead to reduction in Labour requirement of a business organization.

Option B involves students returning back to school which would lead to an increase in sales at the bookshop, this would lead to an increase in required Labour needed to man the bookshop.

The other options in the question are signs of struggling businesses which would need to lay off workers.

8 0
3 years ago
Fidelity Systems reports net income of $81 million. Included in that number is depreciation expense of $9 million, and a gain on
Paladinen [302]

Answer:

$85 million

Explanation:

As per the given question the solution of net cash flows from operating activities using the indirect method is provided below:-

Net cash flow from operating activities = Net income + Depreciation - Gain on sale of equipment - Increase in accounts receivable - Increase in inventory + Increase in accounts payable

= $81 million + $9 million - $2 million - $3 million - $3 million + $3 million

= $93 million - $8 million

= $85 million

So, we have calculated the net cash flow from operating activities by using the above formula.

3 0
3 years ago
James hayes owns 510 shares of ohio utility preferred stock. if this preferred stock issue pays $3.50 per share, what is the tot
katovenus [111]
The total amount of the dividends that Mr. James Hayes will receive in one year is $1785 total dividend. 
The formula to get the total dividend is simply multiply the shares by stock issue per share. In this question we have 510 shares and stock issue pay $3.50 per share.
$3.50 per share * 510 shares = $1785 Total dividends
8 0
3 years ago
tax that you pay when making a profit from selling a house in his is an example of property tax income tax capital gains tax or
defon

Answer:

tax capital gains

Explanation:

the Tax Capital Gains is generated when a real state operation such as the selling of an apartment is done and the seller received more capital/money than the initial price paid for the apartment: e.g.:

Initial price   $200.000

Selling price $250.000

Taxed Capital Gains $50.000

3 0
3 years ago
Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 490,000 shares of stock outstand
Alja [10]

Answer:

$17.04

Explanation:

Book value per share of equity = $5,125,000 / 490,000 = $10.46

Market price per share =  $27.50

$27.50 - $10.46 = $17.04

3 0
3 years ago
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