Use the Information for the Question(s)below

question 1

Multiple Choice

Use the information for the question(s) below.
Kinston Enterprises has no debt and a debt obligation of $47 million that is due now.The market value of Kinston's assets is $102 million,and the firm has no other liabilities.Assume that capital markets are perfect and that Kinston has 5 million shares outstanding.
-The number of new shares that Kinston must issue to raise the capital needed to pay its debt obligation is closest to:

• A)4.3 million.
• B)4.7 million.
• C)5.0 million.
• D)4.0 million.

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Definitions:

Reflex Arc

The neural pathway that controls a reflex action, including at least one sensory neuron and one motor neuron, creating an automatic response to a stimulus.

Receptor

A protein molecule that receives and responds to chemical signals from hormones, neurotransmitters, or other stimuli outside the cell.

Vestibulocochlear

Pertaining to the vestibulocochlear nerve, the eighth cranial nerve, which is responsible for transmitting sound and equilibrium (balance) information from the inner ear to the brain.

Accessory

Relating to additional or auxiliary components or structures, often used to describe nerves or muscles that supplement a primary function.