BL Timber Stock Sells for $48 a Share

question 59

Multiple Choice

BL Timber stock sells for $48 a share.The firm has a rights offer outstanding for new equity shares.Lisa is a current stockholder and owns 350 shares.She just received one right for every share she owns.To purchase one new share she must submit four rights and $40.What is the value of one right?

• A)$1.80
• B)$1.60
• C)$.91
• D)$1.33
• E)$1.46