An existing corporation which has an authorized

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170. An existing corporation which has an authorized capital stock of 40,000 shares @ P100 par value out of which only 10,000shares have been offered for subscription which are now fully paid and subscribed. The corporation increased its authorizedcapital stock by an additional 20,000 shares @ P100 par value. All the remaining unissued shares are offered for subscription.To what extent is the pre-emptive right of X who owns 10% (1,000 shares) of the corporation?a.2,000 new sharesb.2,000 new shares and 3,000 original sharesc.2,000 new shares and 4,000 original sharesd.None of the above
171. It refers to a high-yield but high-risk bonds issued by heavily indebted or financially weak corporations that are desperately inneed of additional capital.
172. What is the classification of dividends declared by X corporation in the form of shares of stocks of Y corporation which Xcorporation owns?
173. Shareholders who shall receive dividends are those who are registered as such in the stock and transfer book as of the:
174. Which distinction between a cash dividend and a stock dividend is false?a.The declaration of cash dividend requires only a majority of the quorum of the board of directors, whereasthe declaration of stock dividend requires the approval of at least 2/3 of the members of the board.b.Cash dividend, once declared, belongs to the stockholder and cannot be transferred to any surplus account of thecorporation; whereas the declaration of stock dividend may be rescinded before its actual issuance.c.Cash dividend has the effect of distributing the accumulated profits to the stockholders; whereas stock dividend hasthe effect of capitalizing such accumulated profits thereby increasing the corporation’s capital.d.A delinquent stockholder is still entitled to receive cash dividend but it must be applied to his unpaid subscriptionbalancewhereas stock dividend shall be withheld until the delinquent stockholder pays the subscription in full.
175. Which of the following statements about fractional shares is false?

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Term
Summer
Professor
N/A
Tags
Promissory note, Negotiable instrument, indorsement

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