The preemptive right refers to the right of common stockholders to: Select one: A. Vote on...
The preemptive right refers to the right of common stockholders to:
Select one:
A. Vote on matters requiring the approval of owners
B. Receive dividends before interest is paid to creditors
C. Maintain their proportionate interests in the corporation when additional shares are issued
D. Receive assets before preferred stockholders when the corporation dissolves
Homework Answers
Answer-:
Preemptive rights are a contractual clause giving a shareholder the right to buy additional shares in any future issue of the company's common stock before the shares are available to the general public. Shareholders who have such a clause are generally early investors or majority owners who want to maintain the size of their stake in the company when and if additional shares are offered.
A preemptive right is sometimes called an "anti-dilution provision." It gives the investor the option of maintaining a certain percentage of ownership of the company as it grows.
So, the correct answer is (c). Maintain their proportionate interests in the corporation when additional shares are issued.
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The preemptive right refers to the right of common stockholders
to:
Select one:
A. Vote on...
The preemptive right gives shareholders the right _____________. a to maintain their proportionate ownership in the...
The preemptive right gives shareholders the right _____________. a to maintain their proportionate ownership in the corporation when new common stock is issued b to sell their share of stock at a premium in the event of liquidation c to give up their vote to another party if they do not attend the annual meeting d to cast one vote for each share owned at the annual meeting of the company
The term residual claim refers to a stockholders’ right to share in assets upon liquidation. acquire...
The term residual claim refers to a stockholders’
right to
share in assets upon liquidation.
acquire additional shares when offered.
elect a board of directors.
receive dividends
The term residual claim refers to a stockholders’
right to
share in assets upon liquidation.
acquire additional shares when offered.
elect a board of directors.
receive dividends
I just need help with a reply to this post. Thank you! Chapter 9 question 9-1 It is frequently stated that the one purpose of the preemptive right is to allow individuals to maintain their proport...
I just need help with a reply to this post. Thank you!
Chapter 9 question 9-1 It is frequently stated that the one purpose of the preemptive right is to allow individuals to maintain their proportionate share of the ownership and control of a corporation. a. How important do you suppose control is for the average stockholder of a firm whose shares are traded on the New York Stock Exchange? b. Is the control issue likely to be of more...
preemptive right is the right of stockholders to fire and replace the board of directors. the...
preemptive right is the right of stockholders to fire and replace the board of directors. the right of stockholders to supersede the actions of top management. the right of stockholders to acquire a proportional amount of any new issues of common stock. the right of top management to act on behalf of the stockholders. the right of the corporation to enter into legally binding contracts without the direct approval of the shareholders.
Which of the following rights do common stockholders typically not have? Select one: A. Right to...
Which of the following rights do common stockholders typically not have? Select one: A. Right to vote and the right to elect the board of directors B. Right to receive the final distribution of assets in liquidation after prior claims have been settled C. Right to participate in additional issues of stock D. Right to receive dividends at a predetermined rate
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...
The preemptive right enables a stockholder to: 1.) protect proportional interest in the company. 2.) receive...
The preemptive right enables a stockholder to: 1.) protect proportional interest in the company. 2.) receive cash dividends after other classes of stock with the preemptive right. 3.) buy capital stock back to the corporation at the option of the stockholder. 4.) receive unequal amounts of dividends on a percentage basis as the preferred stockholders
Question 5 The common stockholders have the right to _____. Answers: vote for the changes in...
Question 5 The common stockholders have the right to _____. Answers: vote for the changes in the firm's charter convert their stock into a bond receive the cash distributions before the preferred stockholders determine the market value of their share receive cumulative dividends Question 6 Investors with a _____ will demand a higher rate of return. Answers: higher time preference for consumption lower exposure to economic risks lower access to production opportunities higher financial creditworthiness lower default premium Question 7...
QUESTION 13 If shareholders are granted a preemptive right they will: A. be given the choice...
QUESTION 13 If shareholders are granted a preemptive right they will: A. be given the choice of receiving dividends either in cash or in additional shares of stock. B. be paid dividends prior to the preferred shareholders during the preemptive period. Chave priority in the purchase of any newly issued shares. D. W. be able to choose the timing and amount of any future dividends. E be entitled to two votes per share of stock.
Name: 1. Cash dividends are paid on the basis of the number of shares A) authorized...
Name: 1. Cash dividends are paid on the basis of the number of shares A) authorized B) issued. C) outstanding. D) outstanding less the number of treasury shares. 2. The preemptive right of a common stockholder is the right to A) share proportionately in corporate assets upon liquidation. B)share proportionately in any new issues of stock of the same class. C) receive cash dividends before they are distributed to preferred stockholders. D) exclude preferred stockholders from voting rights.
The term residual claim refers to a stockholders’
right to
share in assets upon liquidation.
acquire additional shares when offered.
elect a board of directors.
receive dividends
The term residual claim refers to a stockholders’
right to
share in assets upon liquidation.
acquire additional shares when offered.
elect a board of directors.
receive dividends
I just need help with a reply to this post. Thank you!
Chapter 9 question 9-1 It is frequently stated that the one purpose of the preemptive right is to allow individuals to maintain their proportionate share of the ownership and control of a corporation. a. How important do you suppose control is for the average stockholder of a firm whose shares are traded on the New York Stock Exchange? b. Is the control issue likely to be of more...
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...
QUESTION 13 If shareholders are granted a preemptive right they will: A. be given the choice of receiving dividends either in cash or in additional shares of stock. B. be paid dividends prior to the preferred shareholders during the preemptive period. Chave priority in the purchase of any newly issued shares. D. W. be able to choose the timing and amount of any future dividends. E be entitled to two votes per share of stock.
Name: 1. Cash dividends are paid on the basis of the number of shares A) authorized B) issued. C) outstanding. D) outstanding less the number of treasury shares. 2. The preemptive right of a common stockholder is the right to A) share proportionately in corporate assets upon liquidation. B)share proportionately in any new issues of stock of the same class. C) receive cash dividends before they are distributed to preferred stockholders. D) exclude preferred stockholders from voting rights.
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