If Shareholders Are Granted a Preemptive Right They Will Be

question 27

Multiple Choice

If shareholders are granted a preemptive right they will be:

• A)granted shares that receive additional voting privileges
• B)given the choice of receiving dividends in cash or in additional shares of stock
• C)paid dividends prior to the preferred shareholders during the pre-emptive period
• D)able to determine who the candidates should be for any open seats on the board
• E)given the first right to purchase any new shares that are issued