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

Respuesta :

Answer:

c. protects the current shareholders against a dilution of their ownership interests.

Explanation:

The preemptive right is a legal clause that gives a shareholder the option to get more shares if the company decides to issue more stocks with the goal of maintaining the percentage of ownership. This is also known as anti-dilution provision because it protects the shareholder against losing his voting power when more stocks are issued.

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