Which of the Following Explains the Preemptive Right of Common

Multiple Choice

Which of the following explains the preemptive right of common stockholders?

A) A corporation cannot pay any dividend to its preferred stockholders unless it pays the full stated dividend on its common stock.
B) When a company goes bankrupt, its stockholders can recover some (but not all) of what they are owed.
C) If a corporation issues new stock, existing stockholders can purchase new shares in proportion to their existing holdings before the stock is offered to the other investors.
D) If a firm skips a stockholder's dividend in one period, the amount it must pay the next period is equal to the dividend for that period plus the amount of the dividend it skipped in the previous period.