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.

---

Definitions:

Halo Effects

A cognitive bias where an observer's overall impression of a person, brand, or product influences their feelings and thoughts about that entity's character or properties.

Selective Perception

The psychological process by which individuals selectively choose to focus attention on certain stimuli while ignoring others.

Social Networks

Online platforms that allow users to connect, share, and communicate with others, fostering digital communities and interactions.

Right Impression

The act of presenting oneself in a manner that is perceived positively or as intended by others.