Luther Industries Currently Has 100 Million Shares of Stock Outstanding

question 20

Multiple Choice

Luther Industries currently has 100 million shares of stock outstanding at a price of $25 per share.The company would like to raise money and has announced a rights issue.Every existing shareholder will be sent one right per share of stock that he or she owns.The company plans to require twenty rights to purchase one share at a price of $20 per share.The amount of money that Luther will raise through its rights offering is closest to?

• A)$500 million
• B)$125 million
• C)$100 million
• D)$400 million
• E)$200 million

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Definitions:

Lab

Short for laboratory, it is a controlled setting designed for scientific experiments, research, or testing.

New Patient

an individual seeking medical care or consultation who has not previously been seen or treated by a particular healthcare provider or within a specific facility.

NP

Nurse Practitioner; a registered nurse with advanced academic and clinical experience, which enables them to diagnose and manage most common and many chronic illnesses, either independently or as part of a healthcare team.

Single-Booking

A scheduling method where each patient is given a specific time slot for their appointment with no overlap.