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The Pre-Emptive Right Enables a Shareholder to

Question 17

Multiple Choice

The pre-emptive right enables a shareholder to


A) share proportionately in any new issues of shares of the same class.
B) receive cash dividends before other classes of stock without the pre-emptive right.
C) sell ordinary shares back to the corporation at the option of the shareholder.
D) receive the same amount of dividends on a percentage basis as the preference shareholders.

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