RUReady Ltd Wishes to Raise $20 Million

question 93

Multiple Choice

R.U.Ready Ltd wishes to raise $20 million.If the subscription price is $5, the current share price is $7.50, and there are 8 million shares outstanding, what is the value of a right?

• A)$0.63
• B)$1.25
• C)$1.67
• D)$1.88
• E)None of these.

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Definitions:

Unanimous Vote

A unanimous vote occurs when all members of a decision-making body agree on a proposal or decision, indicating full support or approval.

Outside Directors

Board members of a corporation who are not part of the company's day-to-day operations, offering independence and oversight.

Ownership Interest

A party's legal share in or claim to a company, property, or asset, entitling them to certain rights such as profits, voting, and transfers.

Corporate Policy Decisions

Strategic choices made by a company's leadership that impact its operations, ethical stance, or market position.