Question: The preemptive right is important to shareholders because it a.is included in every corporate charter. b.allows managers to buy additional shares below the current market

The preemptive right is important to shareholders because it a.is included in every corporate charter. b.allows managers to buy additional shares below the current market price. c.will result in higher dividends per share. d.protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. e.protects the current shareholders against a dilution of their ownership interests.

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