Valiant Industries Has 20 Million Shares of Stock Outstanding at a Price

question 64

Multiple Choice

Valiant Industries has 20 million shares of stock outstanding at a price of $28 per share.The company wishes to raise more money and plans to do so through a rights issue.Every existing stockholder will receive one right for each share of stock held.For every four rights held by the stockholder,they can buy one share at a price of $28.If all rights are exercised,how much money will be raised in this offer?

• A)$70 million
• B)$120 million
• C)$140 million
• D)$165 million

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Definitions:

Flexibility

The capability to adapt to new, different, or changing requirements, conditions, or environments.

Responsiveness

The quality of reacting quickly and positively; in a business context, it often refers to the speed and efficiency with which an organization responds to customers or changes.

Operations Technology

Is the combination of resources, knowledge, and techniques that creates a product or service output for an organization.

Artifacts

Objects created by humans that are typically of cultural or historical interest.