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:

Business Products

Goods and services that are purchased for the purpose of being used in the production of other goods and services, to support daily operations or for resale.

Oral Contraceptives

Medications taken by mouth to prevent pregnancy, commonly referred to as birth control pills, which contain hormones to inhibit ovulation.

Hormonal Methods

involve the use of hormones to prevent pregnancy and can include birth control pills, patches, injections, and implants.

Premenstrual Syndrome

A collection of emotional, psychological, and physical symptoms that are linked to a woman's menstrual cycle.