NOPREM Inc

question 16

Multiple Choice

NOPREM Inc. is a firm whose shareholders don't possess the preemptive right. The firm currently has 1,000 shares of stock outstanding; the price is $100 per share. The firm plans to issue an additional 1,000 shares at $90.00 per share. Since the shares will be offered to the public at large, what is the amount per share that old shareholders will lose if they are excluded from purchasing new shares?

• A) $90.00
• B) $ 5.00
• C) $10.00
• D) $ 0
• E) $ 2.50

---

Definitions:

Wilhelm Wundt

Often recognized as the father of experimental psychology, he founded the first formal psychology laboratory in Leipzig, Germany, in 1879.

Titchener

Edward Titchener, a psychologist who founded structuralism, a theory focused on breaking down mental processes into the most basic components.

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Nervous Disorders

A broad range of conditions that affect the nervous system, causing symptoms like pain, cognitive dysfunctions, and motor disturbances.