Big Box Retailing Has a Market Capitalization of $500 Million

question 90

Multiple Choice

Big Box retailing has a market capitalization of $500 million and 2 million shares outstanding.In order to finance its growth,the management of Big Box plans to raise further capital through a rights issue.All shareholders will be issued ten rights to purchase ten shares at a price of $1.50 per share.How much money will this raise,if all shareholders exercise their rights?

• A)$15 million
• B)$30 million
• C)$45 million
• D)$60 million

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Definitions:

Span of Control

The number of subordinates or direct reports that a manager or supervisor can effectively oversee.

Subordinates

Employees or team members who are lower in rank or position and report to someone higher in the organizational hierarchy.

Direct Reporting

The process where employees report directly to their immediate supervisor without intermediaries.

Organizational Designs

The planning and structuring of an organization's roles, responsibilities, and processes to achieve its goals efficiently.