Borg Security Systems Is Considering the Sale of 12,000 Shares

question 109

Multiple Choice

Borg Security Systems is considering the sale of 12,000 shares of stock to finance development of a new security product.The firm has 40,000 shares of common stock outstanding,par value of $1.00 per share.The firm has $60,000 in additional paid-in capital and $80,000 in retained earnings.Borg's investment bankers estimate that new shares will bring in $5.15 per share.If Borg goes ahead with the new stock issue,what will be the change in book value per share?

• A) −$1.00
• B) +$0.15
• C) +$0.56
• D) +$1.00
• E) $0

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Definitions:

Visual Cortex

The region of the cerebral cortex that processes visual information, located in the occipital lobe of the brain.

Feature Detectors

Cells in the visual cortex that are sensitive to specific features of the environment.

Orientation

A person's basic awareness of who, where, and when they are; can also refer to sexual orientation or the initial introduction to a new environment or situation.

Peripheral Vision

The part of vision that occurs outside the very center of gaze, allowing humans to perceive objects and movement outside of the direct line of vision.