Barstow Industrial Supply Has Decided to Raise $27

question 14

Multiple Choice

Barstow Industrial Supply has decided to raise $27.52 million in additional funding via a rights offering.The firm will issue one right for each share of stock outstanding.The offering consists of a total of 860,000 new shares.The current market price of the stock is $38.Currently,there are 5.16 million shares outstanding.What is the value of one right?

• A)$0.97
• B)$0.86
• C)$0.48
• D)$0.52
• E)$0.60

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Definitions:

Defense Mechanism

Psychological strategies used by individuals to cope with reality and maintain a self-image.

Repression

A defense mechanism that involves unconscious denial of the existence of something that causes anxiety.

Subliminal Perception

Perception below the threshold of conscious awareness.

Unconscious

Refers to the part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.