The Preemptive Right Is Important to Shareholders Because It

The preemptive right is important to shareholders because it

A) allows managers to buy additional shares below the current market price.
B) will result in higher dividends per share.
C) is included in ecorporate charter.
D) protects the current shareholders against a dilution of their ownership interests.
E) protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate.

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