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:

Hazardous Occupations

Jobs or professions that expose workers to risks that could harm their health or safety.

Davis-Bacon Act

A federal law that requires the payment of prevailing wage rates to all laborers and mechanics working on public construction projects.

Walsh-Healy Public Contracts Act

A United States federal law that establishes minimum wage, maximum hours, and safety and health standards for work on contracts with the federal government.

Prevailing Wages

The average wage paid to workers within a specific area for a given trade or occupation, often determined by government standards for public works projects.