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:

Walmart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, known for its scale and efficiency.

Strategy

A plan of action designed to achieve a long-term or overall aim.

Operational Effectiveness

Refers to an organization's ability to perform activities more effectively and efficiently than its competitors, leading to superior performance.

Supply Chain

The entire system of production, handling, and distribution of goods from raw materials to final products to the consumer.