The Shields Corporation Intends to Issue 100,000 New Shares to Raise

question 16

Multiple Choice

The Shields Corporation intends to issue 100,000 new shares to raise funds for expansion of current plant facilities. The current share price is $20 and there are 500,000 shares outstanding. The number of rights needed to buy a share of stock should be:

• A) 1.
• B) 5.
• C) 20.
• D) 50.
• E) indeterminate without the subscription price