Question: Please answer all questions in at least one paragraph or more.Thank you It is frequently stated that the one purpose of the preemptive right is
Please answer all questions in at least one paragraph or more.Thank you
- 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 importance to stockholders of publicly owned or closely held (private) firms?
- If you bought a share of common stock, you would probably expect to receive dividends plus an eventual capital gain. Would the distribution between the dividend yield and the capital gain yield be influenced by the firms decision to pay more dividends rather than to retain and reinvest more of its earnings?
- With retirement accounts tumbling and millions of homeowners struggling to pay their mortgages during the few years right after the most recent financial crisis, a realization was dawning on many Americans: The banks, brokerage firms, insurance companies and other players in the financial services industry had failed them. Given what we have learned so far in this course, what is your take on this sentiment that some consumers feel Wall Street had failed them during that dreadful period?
- Suppose a firm estimates its WACC to be 10 percent. Should the WACC be used to evaluate all of its potential projects, even if they vary in risk? If not, what might be reasonable costs of capital for average-, high-, and low-risk projects?
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