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.

---

Definitions:

Reproductive Fitness

The genetic contribution an individual makes to the next generation's gene pool, often measured by the number of offspring that survive to reproductive age.

Prospective Mate

An individual considered by another as a potential partner in a romantic relationship, assessing compatibility for a possible future together.

Good Genes

A hypothesis suggesting that certain traits, which are perceived as attractive, are signals of good health and genetic fitness.

Proximity

The physical or psychological closeness between people, which can influence their likelihood to form relationships or bond.