CHOOSE THE ANSWERS FROM THE CHOICES BELOW:

Larry Nelson holds 1,000 shares of General Electrics (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesnt 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 A.) PREEMPTIVE RIGHT, B.) POISON PILL, C.) PROXY that gives the management group control over his shares.

Larrys current investment in the company is A.) $36,800, B.) $101,200, C.) $55,200, D.) $92,000 If the company issues new shares and Larry makes no additional purchase, Larrys investment will be worth A.) $220,800, B.) $88,320, C.) $92,000, D.) $110,400.

This scenario is an example of A.) DILUTION, B.) A TAKEOVER, C.) POISON PILL, D.) A PROXY, Larry could be protected if the firms corporate charter includes a A.) PROXY, B.) A PREEMPTIVE RIGHT provision.

If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become A.) $111,400, B.) $165,600, C.) $110,400, D.) 82,200.

1. Rights and privileges of common stockholders 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 $46.00 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 $36.80 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 . 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