Maureen Owns 20% of the Common Stock of the Queen

question 73

Multiple Choice

Maureen owns 20% of the common stock of the Queen Bean Corporation. The company announced plans to offer an additional 10,000 shares of common stock for sale. If Maureen exercises her preemptive rights, Queen Bean must offer her the opportunity to purchase:

• A) 8,000 shares.
• B) 2,000 shares.
• C) as many of the new shares as the investor is willing and able to buy.
• D) 20% of the outstanding preferred stock.

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