Currently, M & S Inc

question 81

Multiple Choice

Currently, M & S Inc.has 2 million shares outstanding selling at $70 a share.A rights issue will be made that allows 1 share to be purchased for every 5 shares currently held by stockholders for $40 each.Which of the following is true?

• A)the number of shares outstanding will fall to 1.6 million.
• B)the firm will raise $13.33 million.
• C)the stock price will fall to $65.
• D)the total value of the firm will equal $124 million.

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Consumer Decision Making Process

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