Question: I nstructions: This is a Multiple-Answer Question . Unlike a Multiple-Choice type question, in this type of question, you are offered the listed choices [square
I
nstructions: This is a Multiple-Answer Question. Unlike a Multiple-Choice type question, in this type of question, you are offered the listed choices [square clickable boxes] -- you are allowed to choose AS MANY choices that is/are appropriate, i.e. one or more by clicking on the square-box choices.
WARNING: If you pick incorrect one(s), there will be a penalty -- this is to prevent exam-takers from picking ALL to "at least get one correct". You will score the highest by picking only the correct one(s).
Actual Multiple-Answer Question Listed Below:
[click one or more boxes] Preemptive Right policies are important to common stockholders. Which of the following statement(s) regarding Preemptive Right is(are) FALSE. [click one or more boxes]
| It is included in some, but not all, common stock IPOs and issues. | ||
| It prevents transfer of wealth from current stockholders to new stockholders. | ||
| It is granted to upper management (CEO, CFO, board of directors) as perofrmance-based stock options. | ||
| It protects current stockholders against a dilution of their ownership interests. | ||
| Once the company IPO-ed its common stocks, this policy will become beneficial to the founder(s) of the company. | ||
| It protects current bondholders by limiting the company from issuing additional debt (bond) in the future, i.e. limits over-leveraging. | ||
| It could result in higher dividends per share. | ||
| It enables current stockholders to maintain control of the firm. |
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