A South African Group Needs to Raise $4 Million to Pay

question 4

Essay

A South African group needs to raise $4 million to pay for its diamonds in the near future.It will raise the funds by offering rights of 400,000 each, and which entitles the owner to buy one new share.The company currently has one million shares outstanding priced at $40 each.What must be the subscription price on the rights the company plans to offer?

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Definitions:

Detrimental Effects

Negative impacts or consequences that harm or hinder something or someone.

Aerobic Activity

Physical exercise that improves the efficiency of the body's cardiovascular system in absorbing and transporting oxygen.

Relaxation Response

A physiological state of deep rest that can be elicited through various practices such as meditation or deep breathing, counteracting stress effects.

Religion-based Techniques

Strategies or practices grounded in religious beliefs used to solve problems, improve well-being, or achieve spiritual goals.