Precise Machining Is Considering a Rights Offer

question 12

Multiple Choice

Precise Machining is considering a rights offer.The company has determined that the ex-rights price would be $46.The current price is $53 per share,and there are 7 million shares outstanding.The rights offer would raise a total of $70 million.What is the subscription price?

• A)$26.48
• B)$27.06
• C)$27.50
• D)$28.18
• E)$29.10

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Definitions:

Unusual Situation

A scenario or circumstance that deviates significantly from what is considered normal or expected.

Videotape

A magnetic tape used for recording visual images and sound for television broadcasting or personal use.

Peripheral Route

A method of persuasion that relies on superficial cues or aspects, such as the attractiveness of the speaker, instead of the quality of the arguments.

Persuasion

The act or process of influencing someone's beliefs, attitudes, or behaviors through argument, pleading, or explanation.