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Mrrafil [7]
3 years ago
9

If a stock has a preemptive right, it gives current stockholders the right to purchase any new shares issued by the firm, so as

to maintain their level of ownership. This right helps protect current stockholders against both dilution of control and dilution of value.
a. True
b. False
Business
1 answer:
Leto [7]3 years ago
3 0

Answer: True

Explanation:

When new shares are issued, the preemptive right helps maintain the position of the shareholder. The preemptive right is vital to shareholders as it protects them against the dilution of ownership interests.

Also, it gives current stockholders the right to purchase any new shares issued by the firm, so as to maintain their level of ownership.

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Currently digby is paying a dividend of $19. 67 (per share). if this dividend were raised by $3. 64, given its current stock pri
Oliga [24]

Given its current stock price the dividend yield would be 42.39%.

Given,

Digby is paying a dividend of $19. 67 (per share)

Dividend were raised by $3. 64

Dividend yield = Dividend per share / Market price per share.

As there is no share price given, I shall assume that the share price is $100. The new share price will be:

= 100 * (1 + $3. 64)

= $464

The Dividend yield would then become:

= 19.67 / 464

= 42.39%

The dividend yield will be calculated on the basis of the dividend per share divided by the market price per share and this will be calculated on the basis of the percentage.

To learn more about dividend yield here:

brainly.com/question/18687546

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3 0
1 year ago
If a firm has 50 employees at the point it applies for health coverage, what is its classification?
MAXImum [283]

If a firm has 50 employees at the point it applies for health coverage, it classifies as a small employer.

To be eligible for small business medical health insurance, an agency has to have between one and 50 employees. This is taken into consideration as a small commercial enterprise for purposes of purchasing organization medical health insurance. When you have extra than 50 employees, you will need to: observe for huge group insurance

Under the ACA, employers with 50 or greater full-time employees (or the equal in element-time personnel) ought to offer health insurance to 95% of their complete-time personnel or pay a penalty to the IRS. This penalty is pretty hefty—$3,860 in step with the worker in line with the year (in 2020).

The Affordable Care Act (ACA) is a comprehensive reform law, enacted in 2010, that will increase medical health insurance coverage for the uninsured and implements reforms to the medical health insurance market. This consists of many provisions which are constant with AMA coverage and holds the capacity for a higher health care system.

Learn more about the Affordable Care Act here brainly.com/question/26495011

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5 0
2 years ago
If Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other posit
Elden [556K]

Answer:

false

Explanation:

Barcelona has a network structure because it works with staffing agencies to fill many vacant positions.

When a company has a network structure, it works with other companies in order to produce a good or service (outsourcing). In this case, Barcelona outsources some of its human resources functions to other companies.

7 0
3 years ago
Consider luxury weekend hotel packages in Las Vegas. When the price is $250, the quantity demanded is 2,000packages per week. Wh
konstantin123 [22]

Answer:

The elasticity is about 1.43, and an increase in the price will cause hotels' total revenue to decrease

Explanation:

The formula of the midpoint for the variation of the quantity is  \frac{Q2-Q1}{(Q2+Q1)/2} *100 and for the price is \frac{P2-P1}{(P2+P1)/2} *100. With the variation of the price and the quantity the elasticity formula is ΔQ/ΔP. Replacing the elasticity is -1.43

The price elasticity of the demand is bigger than 1, that means that the demand is elastic, every increase of the price will cause a bigger decrease of the quantity, the revenue will drop because the increase of the price do not compansete the decrease of the quantity.

6 0
3 years ago
A toy company creates a new toy that suddenly become very popular. The toys in the stores sell out immediately, and the factorie
shtirl [24]
Your answer would be B. The price will go up because supply is low.
3 0
3 years ago
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