Stephen Owns 5,000 Shares of ABNC Stock

question 189

Multiple Choice

Stephen owns 5,000 shares of ABNC stock. Currently, there are 1.2 million shares outstanding. The company has just announced a rights offering whereby 300,000 shares are being offered for sale
At a subscription price of $24 a share. The current stock price is $27 a share. Assume that Stephen
Sells his rights and that all rights are exercised. What will his ownership percentage be in ABNC
After the rights are exercised?

• A) .17 percent
• B) .22 percent
• C) .33 percent
• D) .38 percent
• E) .42 percent

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Definitions:

Measure

A method or tool used to quantify or assess a variable or condition.

Value

Refers to the importance or worth that a product or service has in the eyes of the consumer, often influencing their purchasing decisions.

Marketing Mix

Refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market, typically encapsulated by the four Ps: Product, Price, Place, and Promotion.

Place Element

Aspects of marketing that focus on the distribution and availability of a product or service to the target consumer.