Question: Instructions: 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

Instructions: 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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