Currently,M & S Inc

question 13

Multiple Choice

Currently,M & S Inc.has 2 million shares outstanding selling at $70 a share.A rights issue will be made that allows 1 share to be purchased for every 5 shares currently held by stockholders for $40 each.Which one of the following is true?

• A) The number of shares outstanding will fall to 1.6 million.
• B) The firm will raise $13.33 million.
• C) The stock price will fall to $65.
• D) The total value of the firm will equal $124 million.

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Definitions:

Bile

A digestive fluid produced by the liver and stored in the gallbladder, aiding in the digestion and absorption of fats in the small intestine.

Amylase

One of a group of starch-splitting enzymes that cleave starch, glycogen, and related polysaccharides.

Maltase

An enzyme that breaks down maltose into glucose, playing a crucial role in the digestive process of carbohydrates.

Carbohydrates

Organic compounds, including sugars, starch, and cellulose, which serve as a major energy source in the diet of animals.