________ Are Rights That Give Existing Shareholders the Option of Subscribing

question 23

Multiple Choice

________ are rights that give existing shareholders the option of subscribing to new shares being issued in proportion to their current ownership interests.

• A) Rights to first refusal
• B) Preemptive rights
• C) transfer rights
• D) Rights to company ownership

---

Definitions:

Quantitative Techniques

Mathematical and statistical methods used in decision-making, often to analyze and interpret data to solve complex problems.

Cost of Capital

The essential yield a firm must generate from its investment activities to preserve its market value and secure financing.

Annual Rate of Return

The percentage return expected on an investment over a one year period.

Decision Rule

A decision rule is a guideline or criterion established for making decisions under conditions of uncertainty, aiming to achieve the best result based on available information.