Jen owns 5,500 of the 350,000 shares of TC Inc. The company has just announced a rights offering whereby 40,000 shares are being offered at a subscription price of $12 a share. The current stock price is $16 a share. Assume she sells her rights and that all rights are exercised. What percentage of the firm will she own after the rights offering?" 14.10 percent 1.35 percent 0.86 percent 0.75 percent 1.27 percent
Jen owns 5,500 of the 350,000 shares of TC Inc. The company has just announced a rights offering whereby 40,000 shares are being offered at a subscription price of $12 a share. The current stock price is $16 a share. Assume she sells her rights and that all rights are exercised. What percentage of the firm will she own after the rights offering?" 14.10 percent 1.35 percent 0.86 percent 0.75 percent 1.27 percent
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter13: Corporations: Earning & Profits And Distributions
Section: Chapter Questions
Problem 31P
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"Jen owns 5,500 of the 350,000 shares of TC Inc. The company has just announced a rights offering whereby 40,000 shares are being offered at a subscription price of $12 a share. The current stock price is $16 a share. Assume she sells her rights and that all rights are exercised. What percentage of the firm will she own after the rights offering?"
14.10 percent |
||
1.35 percent |
||
0.86 percent |
||
0.75 percent |
||
1.27 percent |
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