Valiant Industries Has 30 Million Shares of Stock Outstanding at a Price

question 56

Multiple Choice

Valiant Industries has 30 million shares of stock outstanding at a price of $28 per share. The company wishes to raise more money and plans to do so through a rights issue. Every existing stockholder will receive one right for each share of stock held. For every four rights held by the stockholder, they can buy one share at a price of $28. If all rights are exercised, how much money will be raised in this offer?

• A) $105.0 million
• B) $168.0 million
• C) $210.0 million
• D) $252.0 million

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Definitions:

Minimize Negative Announcement

Strategies or methods used to convey bad news or unfavorable decisions in a way that aims to lessen disappointment or backlash.

Strategy

A plan of action designed to achieve long-term or overall aims and objectives.

Recommendation Refusal

The act of declining to endorse or support someone or something, often in professional or academic contexts.

Indirect Format

A communication approach where the main point or request is not stated directly at the beginning but is introduced later in the message.