What Was the Market Price of a Share of Stock

question 118

Multiple Choice

What was the market price of a share of stock before a rights issue if one share of new stock could be purchased at $100 for every four shares that were previously owned? The stock price after the successful rights issue was $200.

• A) $150
• B) $225
• C) $241
• D) $250

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Definitions:

ERP III

The third generation of Enterprise Resource Planning software, focusing on extending traditional ERP systems to connect with the internet, e-commerce, and other external operations.

ERP

Organizations leverage Enterprise Resource Planning software to handle everyday business tasks such as accounting, procurement, project management, and manufacturing.

FAIS

Financial Accounting Information System (FAIS) is an information system that collects, processes, and stores financial data to provide key financial information to internal stakeholders.

CRM

Customer Relationship Management, a strategy and software that businesses use to manage and analyze customer interactions and data throughout the customer lifecycle.