Explain the role of cash and of earnings when a corporation

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1.How does a preemptive right protect the interests of existing stockholders? 

2.Explain why warrants are rarely exercised unless the time to maturity is small?        . 

3.Under what circumstances is a warrant’s value high?  Explain.

4.Explain the role of cash and of earnings when a corporation is deciding how much, if any, cash dividends to pay to common stockholders.

5.Are there any legal factors that could restrict a corporation in its attempt to pay cash dividends to common stockholders?  Explain.

Reference no: EM13505629

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