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1. proxy / preemptive right / corporate charter 2. 88,000 / 35,200 / 52,800 / 96,800 3. 211,200 / 84,480 / 105,600 / 126,720 4.

image text in transcribed1. proxy / preemptive right / corporate charter

2. 88,000 / 35,200 / 52,800 / 96,800

3. 211,200 / 84,480 / 105,600 / 126,720

4. dilution / a poison pill / a proxy / a takeover

5. proxy / preemptive right

6. 105,600 / 79,200 / 106,600 / 158,400

1. Rights and privileges of common stockholders Aa Aa E Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a that gives the management group control over his shares. Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $44.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $35.20 per share. Larry worries about the value of his investment. . If the company issues new shares and Larry makes no Larry's current investment in the company is additional purchase, Larry's investment will be worth . Larry could be protected if the firm's corporate charter includes a This scenario is an example of provision. If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become

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