Assume a Stock Has an Ex-Rights Price of $32

question 2

Multiple Choice

Assume a stock has an ex-rights price of $32.The rights offer has a requirement of 3 rights per new share and a subscription price of $30.What is the rights-on stock price?

• A)$28.06
• B)$32.67
• C)$42.00
• D)$40.94
• E)$38.33

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Definitions:

Interpersonal Circumplex

A model that categorizes and describes human interpersonal behaviors and personality traits along two dimensions: dominance and warmth.

Skills

The ability to do something well; expertise or competence in a particular activity or domain.

Challenges

In a general context, challenges are obstacles or difficulties that need to be overcome, often requiring effort, skill, or strategy.

Flow

A mental state of deep involvement and immersion in an activity where an individual experiences focus, engagement, and a sense of satisfaction.