The Preemptive Right Enables a Shareholder to

question 58

Multiple Choice

The preemptive right enables a shareholder to

• A) share proportionately in any new issues of shares in the same class.
• B) receive cash dividends before other classes of shares without the preemptive right.
• C) sell shares back to the corporation at the option of the shareholder.
• D) receive the same amount of dividends on a percentage basis as the preferred shareholders.

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