An Investor Exercises Her Right to Buy One Additional Share

question 54

Multiple Choice

An investor exercises her right to buy one additional share at $20 for every five shares held.How much should each share be worth after the rights issue if they previously sold for $50 each?

• A)$35.00
• B)$41.67
• C)$45.00
• D)$46.00

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Definitions:

Borrowing

The act of obtaining something, especially money or goods, with the intention of returning it or its equivalent.

Stealing

The act of taking someone else's property without permission or legal right.

Tax Evasion

represents illegal practices to avoid paying taxes, typically by underreporting income, inflating deductions, or hiding money in undisclosed locations.

Tax Laws

Legislation governing the collection of taxes by the government from individuals and businesses, dictating the rates, exemptions, and penalties.