Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common...
Rights and privileges of common stockholders
Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company’s objectives.
True or False: Larry will receive dividends together with preferred stockholders.
False
True
Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company’s stock currently is valued at $50.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $40.00 per share. Larry worries about the value of his investment.
Larry’s current investment in the company is ? . If the company issues new shares and Larry makes no additional purchase, Larry’s investment will be worth ? .
This scenario is an example of ? . Larry could be protected if the firm’s corporate charter includes a ? provision.
If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become .
Homework Answers
| Ans. 1. | True : Larry will receive dividend together with preferred stockholders . | |||||
| Reason : As the stockholder has right to receive dividend from company if company declare dividend during his holdding period. | ||||||
| Ans.2 | Larry's Current Investment in the company is : $100,000 | |||||
| 2000 sh* $ 50/sh | ||||||
| If the company issues a new shares and Larry makes no adiitional purchase ,Larry 's Investment will be worth :$ 96,000 | ||||||
| 2000 sh *$ 48/sh | ||||||
| We will calculated Weighted Average Price of Old and new shares | ||||||
| Shres | Price | Vlaue | ||||
| 20000 | 50 | 1000000 | ||||
| 5000 | 40 | 200000 | ||||
| 25000 | 1200000 | |||||
| Weighted Avg. Price | Total Value of Old and New shares isuued/ Total No. of Shares outstanding | |||||
| 12,00,000/25,000 | ||||||
| 48 | ||||||
| Ans. 3 | The Senario is an example of Diluition of Shares. Larry could be proteched if the Firms corporate charter includes the provision of Anti-Dilution of shares. | |||||
| Ans. 4 | If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become : $ 100,000 |
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Rights and privileges of common
stockholders
Larry Nelson holds 1,000 shares of General Electric (GE) common...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE)...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company’s objectives. True or False: Larry can invest in another company that is selling class A stocks to the public, and class B shares will be retained by company insiders. This will help the founders maintain...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE)...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry will receive dividends together with preferred stockholders. O True False Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric's (GE)...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a that gives the management group control over his shares. Larry also holds 2,000 shares of common stock in a company...
Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has...
Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: The preemptive right allows Larry to purchase any additional shares sold by the company. This right will protect Larry from dilution in the value of the stocks he holds. O False O True Larry also holds 2,000 shares...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE)...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry can vote in person at the company's annual meeting, through the mail, or by transferring the right to vote to another person by means of transfer of ownership of shares....
Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is...
Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a gives the management group control over his shares. that Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The...
please complete all parts to the problem. added extra pictures of answer choices to choose from...
please complete all parts to the problem. added extra pictures
of answer choices to choose from so its easier.
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a that...
Options for blanks 1. a) proxy b) preemptive right c)corporate charter d)poison pill 2. a)37600 b)56400...
Options for blanks
1. a) proxy b) preemptive right c)corporate charter d)poison
pill
2. a)37600 b)56400 c)94000 d)103,400
3. a)90240 b)135360 c)225600 d)94000
4. a)dilution b)a poison pill c)a proxy d)a takeover
5. a)proxy b)preemptive right
6. a)113800 b)84600 c)169200 d)112800
1. Rights and privileges of common stockholders Aa Aa E that Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to...
able to stockholders in the market will be badly managed True False We choose firm valu...
able to stockholders in the market will be badly managed True False We choose firm valu sume that makes are eficient hinctive in decision make making we do not need to True False with fewer directors re a lly effective corporate governance than boards True False 4. Rounds with me hands with move insiders are few insider ally more effective at corporate overnance than boards with True False 3. Pinancial markets tend to reach negatively investment announcements (R&D, new project)...
Question 3 (1 point) Common stockholders have the right to vote on corporate matters, to share...
Question 3 (1 point) Common stockholders have the right to vote on corporate matters, to share in the corporation's net income, to participate in additional issuances of stock, and in the case of corporate liquidation, to share in any asset distributions after any prior claims against the corporation by its creditors have been settled. True False Question 4 (1 point) Saved Shares that have been sold and issued to stockholders constitute the a corporation. shares of O issued O outstanding...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry will receive dividends together with preferred stockholders. O True False Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a that gives the management group control over his shares. Larry also holds 2,000 shares of common stock in a company...
Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: The preemptive right allows Larry to purchase any additional shares sold by the company. This right will protect Larry from dilution in the value of the stocks he holds. O False O True Larry also holds 2,000 shares...
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry can vote in person at the company's annual meeting, through the mail, or by transferring the right to vote to another person by means of transfer of ownership of shares....
Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a gives the management group control over his shares. that Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The...
please complete all parts to the problem. added extra pictures
of answer choices to choose from so its easier.
1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a that...
Options for blanks
1. a) proxy b) preemptive right c)corporate charter d)poison
pill
2. a)37600 b)56400 c)94000 d)103,400
3. a)90240 b)135360 c)225600 d)94000
4. a)dilution b)a poison pill c)a proxy d)a takeover
5. a)proxy b)preemptive right
6. a)113800 b)84600 c)169200 d)112800
1. Rights and privileges of common stockholders Aa Aa E that Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to...
able to stockholders in the market will be badly managed True False We choose firm valu sume that makes are eficient hinctive in decision make making we do not need to True False with fewer directors re a lly effective corporate governance than boards True False 4. Rounds with me hands with move insiders are few insider ally more effective at corporate overnance than boards with True False 3. Pinancial markets tend to reach negatively investment announcements (R&D, new project)...
Question 3 (1 point) Common stockholders have the right to vote on corporate matters, to share in the corporation's net income, to participate in additional issuances of stock, and in the case of corporate liquidation, to share in any asset distributions after any prior claims against the corporation by its creditors have been settled. True False Question 4 (1 point) Saved Shares that have been sold and issued to stockholders constitute the a corporation. shares of O issued O outstanding...
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