A Company Needs $3,000,000 for Expansion

question 54

Multiple Choice

A company needs $3,000,000 for expansion. They decide to raise the capital by issuing new shares. How many shares does the company need to sell to raise the amount, if the last share issue was at a price of $1 each and the current market price for the company's shares is $1.50 per share?

• A)500,000 shares
• B)100,000 shares.
• C)1 million shares.
• D)2 million shares.

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Definitions:

Universal Standards

Principles or criteria that are globally accepted and applied across various industries, fields, or disciplines to ensure consistency, quality, and effectiveness.

Raw Material Inputs

Basic materials that are used in the manufacturing process to produce goods and finished products.

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.

Performance Measure

Criteria or benchmarks used to assess the effectiveness or success of an individual, team, or company's work or output.