Dill Owns Five Per Cent of the Outstanding Shares in Pickle

question 8

Multiple Choice

Dill owns five per cent of the outstanding shares in Pickle Ltd,which has just announced a one for five rights issue with a subscription price of $1.90.The current 'cum rights' price for Pickle shares is $2.20.If the number of outstanding shares in Pickle Ltd is 5000,what is the theoretical value of the right to one new share?

• A)$0.05
• B)$0.25
• C)$0.30
• D)$0.45

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Definitions:

Cortisol

A steroid hormone produced by the adrenal glands, often released in response to stress and low blood-glucose concentration.

Interpersonal Conflict

A situation in which two or more people in an interaction perceive incompatible goals or interference in achieving their objectives.

Approach-Avoidance Conflict

A psychological conflict occurring when a goal is both attractive and undesirable at the same time, creating internal emotional tension.

Avoidance-Avoidance Conflict

A psychological conflict that arises when an individual must choose between two undesirable outcomes.