Hallie Owns 20% of the Common Stock of the Bean

question 117

Multiple Choice

Hallie owns 20% of the common stock of the Bean Brothers Coffee Company. The company announced plans to offer an additional 10,000 shares of common stock for sale. If Hallie exercises her preemptive rights, Bean Brothers must offer her the opportunity to purchase

• A) 8,000 shares.
• B) 2,000 shares.
• C) as many of the new shares as the investor is willing and able to buy.
• D) 20% of the outstanding preferred stock.

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