The preemptive right allows common stockholders to: Group of answer choices vote for the board of directors. maintain a proportionate share of ownership in the firm. increase their wealth by selling their rights. preempt the protective covenants of bondholders. convert common shares to preferred shares.
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- The preemptive right allows common stockholders to: preempt the protective covenants of bondholders. vote for the board of directors. increase their wealth by selling their rights. convert common shares to preferred shares. maintain a proportionate share of ownership in the firm.Which of the following would NOT be a right of a common stockholder? 1. Receive interest income on stock. 2. Vote at stockholders’ meetings. 3. Receive dividends, if any. 4. Sell stock.1. I need help with multiple choice finance home work question Which of the following is not a right of those who own common shares? Obtain proportionate dividends once announced. Obtain periodic interest. Right to purchase more shares if company issues new shares. Vote for company directors. Residual proceeds from asset disposal in liquidation.
- A share of common stock in a firm represents an ownership interest in that firm and allows stockholders to i) vote. ii) receive dividends. iii) receive interest payments.Which of the following describes preferred stock? a. Stock that sells for a very high price b. Stock that is sold to employees of the company as a performance incentive c. Stock which gives shareholders certain preferences and advantages over common stock d. Stock that is purchased by the corporation for investment purposesWhich of the following is a characteristic of common stock?a. The right to the residual income after creditors have been paidb. Limited liability in the case of the corporation going bankruptc. Voting rights to elect the board of directorsd. The right to maintain a proportionate share of ownership in the firm (when new shares are issued, stockholders have the first right of refusal)e. All of the above
- Which of the following describes preferred stock? O a. Stock which gives shareholders certain preferences and advantages over common stock O b. Stock that is purchased by the corporation for investment purposes c. Stock that sells for a very high price O d. Stock that is sold to employees of the company as a performance incentiveIn what way is a preferred stock usually more similar to a bond than to a common stock? O a. Preferred stockholders are more risky than common stocks O b. Preferred stockholders elect the board of directors of the organization O c. Preferred bondholders participate in the growth of the company through increases in dividends and stock prices O d. Preferred stockholders are typical entitled fixed payments O e. If the company were to go into liquidation, preferred stockholders will be entitled to payments after common stockholders are paid-offDiscuss the benefits and drawbacks, to the shareholders of a company, of a public listing on a stock exchange compared to private equity finance as a way of disposing their shares.
- An advantage of preferred stock financing is preferred ______. a. stockholders can vote for the Board of Directors and be an integral part of the direction of the company b. stock is the most preferred method of raising capital c. stock dividends are tax-deductible for the investor d. stock dividends are flexible, and the penalties for not paying a dividend are not severeThe right of a shareholder to share proportionally in any new stock issue is called a/an ____________ right. Select one: a. coattail b. preemptive c. indenture d. secured e. charterWhich of the following represents one of the basic rights of stockholders? a. Stockholders may sell their stock back to the company if they wish. b. Stockholders may authorize a business contract on behalf of the corporation. c. Stockholders may determine at what price the company issues stock. d. Stockholders may participate in management by voting on corporate matters.