Complete Question:
Hallie owns 20% of the common stock of the Bean Brothers Coffee Company. The company announced plans to offer an additional 10,000 shares of common stock for sale. If Hallie exercises her preemptive rights, Bean Brothers must offer her the opportunity to purchase?
Answer:
2,000 shares
Explanation:
The preemptive rights is the equal opportunity to each shareholder to purchase a proportionate of new shares issuing at the stock exchange to retain its ownership or control position.
Halie has purchased 20% of the company's shares then, if the company is going to issue 10,000 shares of common then 20% of it will be preemptive rights given to Halie as she owns 20%. This means 2,000 share which is 20% of new share offerings would be preemptive rights.
Answer:
The Contingent liability to be recorded for this lawsuit on the current balance sheet is $0.
Explanation:
A Contingent liability is recorded when the chances are probable and the amount can be reasonably estimated.
As in the given case it is not probable that the company will lose the case, no Contingent liability to be recorded.
Therefore, The Contingent liability to be recorded for this lawsuit on the current balance sheet is $0.
The term <u>price taker</u> refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product. Read below about a perfectly competitive market.
<h3>What is a perfectly competitive market?</h3>
In economics, a perfect market is also known as an atomistic market. A effect competition is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition.
Therefore, in such a market the price taker must take the prevailing market price its product.
learn more about price taker: brainly.com/question/15416827
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