Tangible Technologies Has a Market Capitalization of $150 Million and 8

question 59

Multiple Choice

Tangible Technologies has a market capitalization of $150 million and 8 million shares outstanding.In order to finance its growth,the firm's management plans to raise further capital through a rights issue.All shareholders will be issued one right per share.For every 4 rights held by a stockholder,they can purchase one share at a price of $15 per share.How much money will this raise,if all shareholders exercise their rights?

• A)$30 million
• B)$150 million
• C)$120 million
• D)$15 million
• E)$37.5 million

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Definitions:

Multimedia Principle

The educational concept that learning is improved when information is presented using both words and relevant visuals, rather than words alone.

Firsthand Experience

Direct exposure or engagement with events or situations, gaining knowledge or skills from being personally involved.

Assertions

Statements that declare or affirm something to be true, often used as a basis of argument or evidence in discussions.

Trustworthiness

The quality of being reliable, honest, and dependable, often considered essential in building and maintaining strong interpersonal relationships.