Image Storage Corporation Has 1,000,000 Shares Outstanding

question 61

Multiple Choice

Image Storage Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using a (North American) rights issue. If the current stock price is $50 and the subscription price is $47/share, what is the value of a right?

• A)$0.40/right
• B)$5.00/right
• C)$2.50/right
• D)$1.00/right

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