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. O 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 $50.00 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 $40.00 per share. Larry worries about the value of his investment. . If the company issues new shares and Larry makes no additional purchase, Larry's Larry's current investment in the company is investment will be worth This scenario is an example of 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 True False $60,000 $100,000 Larry also holds 2,000 shares of common sto any that only has 20,000 shares outstanding. The company's stock currently is valued at $50.00 per share. The company needs to rais $110,000 1 to invest in production. The company is looking to issue 5,000 new shares at a price of $40.00 per share. Larry worries about the va estment. $40,000 V . If the company issues new shares and Larry makes no additional purchase, Larry's Larry's current investment in the company is investment will be worth This scenario is an example of 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 Larry also holds 2,000 sh $50.00 per share. The co $40.00 per share. Larry $120,000 mon stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $100,000 s to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $96,000 the value of his investment. $144,000 pany is . If the company issues new shares and Larry makes no additional purchase, Larry's Larry's current investmer investment will be worth This scenario is an example of . 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 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 $50.00 per share. The compan a proxy se new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $40.00 per share. Larry worrie alue of his investment. poison pill V . If the company issues new shares and Larry makes no additional purchase, Larry's Larry's current investment in ti a takeover investment will be worth dilution This scenario is an example of 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 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 $50.00 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 $40.00 per share. Larry worries about the value of his investment. . If the company issues new shares and Larry makes proxy se, Larry's Larry's current investment in the company is investment will be worth preemptive right This scenario is an example of 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 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 $50.00 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 $40.00 per share. Larry worries about the value of his investment. . If the company issues new shares and Larry makes no addi Larry's current investment in the company is investment will be worth $90,000 ase, Larry's $120,000 $180,000 This scenario is an example of Larry could be protected if the firm's corporate charter includes a provision. $121,000 If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become