1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry will receive dividends together with preferred stockholders. True False 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 $45.00 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 $36.00 per share. Larry worries about the value of his investment. Larry's current investment in the company is investment will be worth . If the company issues new shares and Larry makes no additional purchase, Larry's provisior If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become False Larry also holds 2,000 shares of common sto $45.00 per share. The company needs to rais $36.00 per share. Larry worries about the va Larry's current investment in the company is Larry also holds 2,000 sh $45.00 per share. The co $36.00 per share. Larry Larry's current investmer investment will be worth $45.00 per share. The compan $36.00 per share. Larry worrie Larry's current investment in th investment will be worth This scenario is an example of and Larry makes nc \begin{tabular}{l|l|} \hline ares and Larry makes no additi & $162,000 \\ \hline orate charter includes a & $109,000 \\ \hline e, Larry's \\ \hline & \\ \hline \end{tabular} value in the firm will become