The preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. b. protects the current shareholders against a dilution of their ownership interests. c. is included in every corporate charter. d. will result in higher dividends per share. e. allows managers to buy additional shares below the current market price.
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Home » Business » The preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. b. protects the current shareholders against a dilution of their ownership interests.