Soledad Received One Stock Right for Every Two Shares of Stock

question 50

Multiple Choice

Soledad received one stock right for every two shares of stock she owned.She owned 100 shares that she purchased two years ago for $1,000.Each of the 50 rights that she received allows her to purchase one share of stock for $15.The stock is currently selling for $22 per share.What is her basis in the 50 stock rights?

• A)$0
• B)$137.25
• C)$159.09
• D)$274.51

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Definitions:

Majority Opinion

In judicial contexts, the official statement of the decision agreed upon by more than half of the members of a court, which becomes the ruling of the court.

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