1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric common stock. As a shareholder, he has the right to be involved in the election of its directors. These directors are responsible for managing the company and achieving the company's objectives. True or False: Larry can invest in another company that is selling class A shares to the public, and class B shares will be retained by company insiders. This will help the founders maintain control in the company. O True O False Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. Currently, the company's stock is valued at $47.00 per share. The company needs to raise new capital to invest in its future production activities. The company is anticipating issuing 5,000 new shares at a price of $37.60 per share. Larry worries about the value of his investment. Larry's current investment in the company is worth $94,000. If the company issues its new shares and Larry makes no additional investments in the company, then his investment will be worth $ This scenario is an example of dilution Larry could be protected if the firm's corporate charter includes a provision. If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become SS