You Decide to Raise $8 Million in Additional Funding Via

question 158

Multiple Choice

You decide to raise $8 million in additional funding via a rights offering. One right is being granted for every share of stock currently outstanding. The offering consists of a total of 400,000 new shares. Currently, there are 2.5 million shares outstanding at a market price of $31 per share. What is the value of one right?

• A) $.71
• B) $1.15
• C) $1.24
• D) $1.37
• E) $1.52

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Definitions:

Voluntarily

Done, given, or acting of one's own free will without coercion or expectation of reward.

Nonwrongful Dissociation

Occurs when a member exits a partnership or limited liability company without violating the agreement terms or causing harm.

Value

The importance, worth, or usefulness of something, often determined by its desirability, utility, or monetary worth.

Charging Order

A legal order granted by a court to a creditor, allowing the seizure of an asset or financial interest of the debtor within a partnership or limited liability company.