Assuming Everything Else Is Constant,if a Stock's Old Price Is

question 3

Multiple Choice

Assuming everything else is constant,if a stock's old price is $40 and the ex-rights or new stock price is $32,then the value of the right is:

• A) -$8.
• B) $8.
• C) impossible to determine without the subscription price.
• D) impossible to determine without the number of rights needed to buy one share.

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Definitions:

Restricting Choices

The act of limiting the options available to a person or group, often to simplify decision making or control outcomes.

Gender Barrier

Socially constructed obstacles that hinder individuals' opportunities based on their gender.

Jargon

Specialized language used by a particular profession or group that may be difficult for others to understand.

Communication Barriers

Obstacles or difficulties in the process of exchanging information that prevent clear and effective communication.