The net income that firm carns can either be paid out to shareholders as ___ or can be reinvested in the company as ___. a. interest: additional paid-in capital b. dividends: retained earnings c. shares: capital stock d. d. capital gains: additional paid-in capital Scubapro Corporation currently has 500,000 shares outstanding and plans to issue 200,000 more shares in a seasoned equity offering. The current shareholders have preemptive rights on any new issue of stock by Scubapro Corporation. An investor with 20,000 shares who exercises his preemptive rights on the new stock issue will have the right to buy how many stocks? a. 200,000 shares b. 120,000 shares c. 80,000 shares d. 12,000 shares e. 8,000 shares The last dividend on Spirex Corporation's common stock was exist4.00, and the expected growth rate is 10 percent. If you require a rate of return of 20 percent, what is the highest price you should be willing to pay for this stock? a. exist44.00 b. exist38.50 exist40.00 d. exist45.69