Vs. What is BGS Ch 08: Assignment - Basic Stock Valuation Q Search this co Back to Assignment Attempts: 23 Average: 2514 1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric common stock. The annual shareholders meeting is being held soon, but as a minor shareholder Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running GE. Larry must have signed proxy that gives the management group control over his shares. Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. Currently, the company's stock is valued at $41.00 per share. The company needs to raise new capital to invest in its future production activities. The company is anticipating issuing 5,000 new shares at a price of $32.80 per share. Larry worries about the value of his investment. . If the company issues its new shares and Larry makes no additional Larry's current investment in the company is worth $ Investments in the company, then his investment will be worth is ols 7. Larry could be protected if the firm's corporate charter indudes a This scenario is an example of provision eductory If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become - Grade 11 Now Continue without saving