BL Timber Stock Sells for $48 a Share

question 75

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

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Definitions:

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources.

Rules and Procedures

Established guidelines and systematic methods designed to organize and standardize actions within an organization or activity.

Personal in Nature

Refers to something that is intended for or affects an individual in a private, intimate, or personal capacity.

Assignment

The transfer of rights or property from one party to another.