What Was the Market Price of a Share of Stock

question 111

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 4x + 100 = $200 x 5
• 4x/4 = 900/4

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