A Shareholder Currently Owns 500 Shares of ABC

question 23

Multiple Choice

A shareholder currently owns 500 shares of ABC. Each share is currently priced at $15. The company has just released a rights offering at $12 plus 4 rights. What is the value of one right?

• A) $0.25
• B) $0.60
• C) $.072
• D) $1.50
• E) $3.00

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Definitions:

Indigenous

The descendants of groups of people living in the territory at the time when other groups of different cultures or ethnic origin arrived there.

Braves

Often refers to young Native American men, historically seen as warriors within their tribes, but the term can carry different meanings across cultures.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Ethnic Categories

Classifications of individuals into groups based on shared cultural, linguistic, or ancestral characteristics.