Question 12 The preemptive right is designed to allow existing shareholders to buy shares of the new offering if they desire. O allow management to diffuse stock ownership any voting power. O allow existing shareholders the right to sell their existing shares before the new offer. O allow managers to preempt a stock offering if they do not like the terms of the deal. Question 14 Which of the following statements is true? Discount yield is always lower than bond equivalent yield on the same security. Discount yield is always higher than bond equivalent yield on the same security. O Discount yield is always equal to bond equivalent yield on the same security. Discount yield can be lower or higher than bond equivalent yield on the same security