Why Is the Preemptive Right Important to Shareholders

question 24

Multiple Choice

Why is the preemptive right important to shareholders?

• A)It allows managers to buy additional shares below the current market price.
• B)It results in higher dividends per share.
• C)It is included in every article of incorporation.
• D)It protects the current shareholders against a dilution of their ownership interests.

Identify the optimal résumé length and format based on professional experience and industry standards.

Learn about the dynamics of today’s job market, including the role of the internet and social media in job searching.

Understand the distinction between open and hidden job markets and strategies to access both.

Know the best practices for protecting personal information when posting résumés online.

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Definitions:

Residual Value

The forecasted financial value of an asset as it approaches the close of its effective life.

Depreciation Method

A systematic approach for allocating the cost of a tangible asset over its useful life to account for wear and tear, decay, or obsolescence.

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.

Depreciation

Distributing the cost of a physical asset methodically over its period of utility.