Ask Question
BusinessBusiness
22 July, 17:10

Maggie owns 10% or 50,000 common shares of a small biotech company. Although she has enjoyed a lot of control, Maggie realizes that in order for the firm to acquire the funds to grow in a recessionary economy, it will need to issue more stock. Unless she and others exercise preemptive rights,

+3
Answers (2)
  1. 22 July, 17:24
    0
    Answer: Maggie 's control that is 10%over the small biotech company will be reduced

    Explanation:

    Maggie owns 10% or 50,000 common shares of a small biotech company. Although she has enjoyed a lot of control, Maggie realizes that in order for the firm to acquire the funds to grow in a recessionary economy, it will need to issue more stock. Unless she and others exercise preemptive rights

    In doing so to acquire more funds, Maggie's share of about 10% or 50000 common shares of a small biotech company will now be reduced as more investors come in to biotech company avoid recession
  2. 22 July, 17:30
    0
    Answer:the new issue will dilute her ownership.

    Explanation:Dilution of ownership occurs when a company sells it's shares to more people therby making the value of existing shareholders shares smaller or their

    Ownership percentage of that company

    So unless they take the first option to acquire certain new property or assets coming into existence before it can be offered to any other person or entity the new issue will dilute her ownership
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Maggie owns 10% or 50,000 common shares of a small biotech company. Although she has enjoyed a lot of control, Maggie realizes that in ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
This information relates to Cullumber Co ... 1. On April 5, purchased merchandise from Oriole Company for $27,900, terms 2/10, n/30.2. On April 6, paid freight costs of $670 on merchandise purchased from Oriole Company. 3.
Answers (1)
Which of the following assumptions is false in a cost-volume-profit analysis? Total sales and total costs can be represented by straight lines. Within the relevant range of operating activity, the efficiency of operations does not change.
No Answers
The company has been approached by a customer with a request for a 100-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits
Answers (1)
Revenues for United Parcel Service (UPS) come from the following business segments: 60 percent from U. S. package delivery operations, 22 percent from international package delivery, and 18 percent from non-packaging operations.
Answers (1)
Following is a bank reconciliation for Zocar Enterprises for June 30, 2018. Cash Account Bank Statement Balance as of 6/30/2018 $1,918 $3,000 Deposit in transit 600 Outstanding checks (1,507) Note collected by bank 2,000 Bank service charge (25) NSF
Answers (1)
New Questions in Business
Long-lived assets are: a) non-operating assets expected to yield their economic benefits (or service potential) over a period longer than one year.
Answers (1)
An airline company is interested in the opinions of their frequent flyer customers about their proposed new routes. Specifically, they want to know what proportion of them plan to use one of their new hubs in the next 10 months.
Answers (1)
Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is
Answers (1)
Why is it important to know the interest rate on your credit card? a) The higher the interest rate, the more money you will be paying back b) The higher the interest rate, the less money you will be paying back c) The lower the interest rate, the
Answers (2)
It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only all the firms being compared have the same proportion of fixed assets to total assets. a) trueb) false
Answers (1)
Home » Business » Maggie owns 10% or 50,000 common shares of a small biotech company. Although she has enjoyed a lot of control, Maggie realizes that in order for the firm to acquire the funds to grow in a recessionary economy, it will need to issue more stock.
Sign Up Forgot Password?