Jenna Owns 600 Shares of Stock in the Digital Sound

question 223

Multiple Choice

Jenna owns 600 shares of stock in the Digital Sound Company. Currently, there are 900,000 shares of stock outstanding. The company has just announced a rights offering whereby 300,000 shares are being offered for sale at a subscription price of $30 a share. The current stock price is $39 a share. Assume that Jenna sells her rights and that all rights are exercised. What will Jenna's ownership percentage in the Digital Sound Company be after the rights are exercised?

• A) .0005 %
• B) .0025 %
• C) .0500 %
• D) 2.500 %
• E) 5.000 %

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Definitions:

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