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QUESTION 17 The preemptive right is important to shareholders because it a. allows managers to buy additional shares below the current market price. O b.
QUESTION 17 The preemptive right is important to shareholders because it a. allows managers to buy additional shares below the current market price. O b. will result in higher dividends per share. O c. is included in every corporate charter. d. protects the current shareholders against a dilution of their ownership interests. O e. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. QUESTION 18 A stock is expected to pay a dividend of S0.75 at the end of the year. The required rate of return is , = 10.5%, and the expected constant growth rate is g = 6.4% What is the stock's current price? a. $17.39 b. $17.94 O c $18.29 d. $18.75 eS1922
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