Table 18-2
Given the Following Data $\begin{array}{lr}\text { Net sales } & \$ 100,000 \\\text { Cost of goods sold } & 50,000 \\\text { Gross margin } & \$ 50,000 \\\end{array}$

question 109

Multiple Choice

Table 18-2
Given the following data:
$\begin{array}{lr}\text { Net sales } & \$ 100,000 \\\text { Cost of goods sold } & 50,000 \\\text { Gross margin } & \$ 50,000 \\\end{array}$
-Refer to Table 18-2.If net sales increased 15%,and gross margin increased 10%,then cost of goods sold must have:

• A) decreased 20.0%
• B) increased 20.0%
• C) decreased 12.5%
• D) increased 12.5%

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Definitions:

Subscription Price

The price at which existing shareholders can buy more shares of stock in a rights issue before it is offered to the public.

Rights Offering

A financing process in which a company offers existing shareholders the opportunity to purchase additional shares directly, usually at a discount and before the general public.

Institutional Investors

These are entities such as pension funds, mutual funds, insurance companies, and endowments that invest large amounts of money on behalf of individuals.

Private Placements

Private placements refer to the sale of securities to a relatively small number of select investors as a way of raising capital, without needing to publicly register the securities.