Assuming Everything Else Is Constant, If a Stock's Old Price

question 6

Multiple Choice

Assuming everything else is constant, if a stock's old price is $25 and the ex-rights or new stock price is $19, then the value of the right is:

• A) $6.00.
• B) -$6.00.
• C) impossible to determine without the subscription price.
• D) impossible to determine without the number of rights needed to buy one share.

---

Definitions:

Essential Part

A component or element that is crucial or necessary for the functionality, operation, or completeness of a whole.

Coaching

The process of guiding an individual or team to improve their skills, performance, or personal development.

Obstacles

Barriers, impediments, or hurdles that hinder progress towards achieving a goal or objective.

Expectancy Theory

A motivational theory suggesting that people are motivated to perform actions based on the expected outcomes and the value they place on those outcomes.