For a Particular Stock the Old Stock Price Is $20,the

question 62

Multiple Choice

For a particular stock the old stock price is $20,the ex-rights price is $15,and the number of rights needed to buy a new share is 2. Assuming everything else constant,the subscription price is ______.

• A) $5
• B) $13
• C) $17
• D) $18
• E) $20

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Definitions:

Revenue Account

An account that tracks the income generated by a business from its normal operations.

Expense Account

An account used to track money spent or costs incurred in the operation of a business, helping in understanding and managing expenses.

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid.

Fiscal Period

A specific time period used for accounting purposes and financial reporting, usually spanning a year, but can also be a quarter or month.