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2 years ago

The preemptive right

Business

1 answer:

nika2105 [10]2 years ago

6 0

Answer:

The correct answer to the following question will be Option A.

Explanation:

A shareholder's right and opportunity in such a company to get the first possibility to buy a current concept of this kind of business's stock concerning the number of inventory the shareholder previously holds termed as a Preemptive right.
It offers the existing shareholders an opportunity to purchase the fresh shares whenever the company issues extra capital to just not dilute current ownership.

Other choices have no relation to the given situation. So choice A is the correct answer to that.

You might be interested in

Refer to the following table to answer the following questions:

sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

$Checkable \ deposits = \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\$

Solution:

$\text{M1= currency +checkable deposits + travellers check}$

= $400000000+$340000000+$4000000

= $744000000

$\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}$

= $744000000 + $50000000+$6000000+$850000000

= $1,650,000,000

Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow
Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset side

3 0

3 years ago

If the Federal Reserve were to change from an expansionary to a contractionary monetary

zzz [600]

Answer:

B) systematic risk

Explanation:

Federal Reserve changes in monetary policies affect the entire securities market hence considered a Systematic risk. It is also known as the Non-diversifiable risk ; it cannot be diversified away unlike stock specific or industry specific risk(unsystematic ) which can be eliminated through diversification.

Systematic risk is unavoidable and may be difficult to predict. Other examples include increase in long term interest rates, recessions or wars. Additionally, Investors are only compensated for systematic risk and not for diversifiable risk.

6 0

3 years ago

Amortization is:Select one:A. The process of allocating to expense the cost of a plant asset to the accounting periods benefitin

Anvisha [2.4K]

Answer:

The correct answer is option B.

Explanation:

Amortization is a technique used in accounting. It involves the process of spreading payment over multiple periods. In accounting, amortization refers to the allocation of the cost of intangible assets over its lifetime.

For instance, amortization of a loan means spreading the interest and principal of the loan over its lifetime. It means fixed monthly payments of interest and principal.

4 0

3 years ago

Select the correct answer.<br> How is augmented reality used in businesses?

garri49 [273]

Answer:

It uses everyday things, items like iPhones or tablets, sensors and market to find the place of physical items and then suggest where to put virtual objects.

This might be a little off since I'm not very familiar with business stuff, but I hope this helps.

7 0

3 years ago

We are evaluating a project that costs $1.68 million, has a six-year life, and has no salvage value. Assume that depreciation is

zvonat [6]

Answer:

Best-Case Worst-Case

NPV NPV

PV of cash inflows $2,897,706 $3,187,477

PV of project cost $1,680,000 $1,848,000 ($1,680,000 * 1.1)

NPV $1,217,706 $1,339,477

Explanation:

a) Data and Calculations:

Initial project cost = $1.68 million

Project's estimated life = 6 years

Salvage value = $0

Depreciation expense = $280,000 ($1.68 million/6)

Income Statement:

Sales revenue (90,000 * $37.95) = $3,415,500

Cost of goods sold:

Variable cost (90,000 * $23.20) = 2,088,000

Gross profit = $1,327,500

Fixed costs = 815,000

Income before tax = $512,500

Income tax (21% of $512,500) = 107,625

Net income = $404,875

Add depreciation expense 280,000

Annual cash inflows = $684,875

PV annuity factor for 6 years at 11% = 4.231

PV of annual cash inflows of $684,875= $2,897,706 ($684,875 * 4.231)

Annual cash inflows = $753,363 ($684,875 * 1.1)

PV of annual cash inflows of $753,363 = $3,187,477 ($753,363 * 4.231)

3 0

3 years ago