Precise Machining Is Considering a Rights Offer

question 12

Multiple Choice

Precise Machining is considering a rights offer.The company has determined that the ex-rights price would be $46.The current price is $53 per share,and there are 7 million shares outstanding.The rights offer would raise a total of $70 million.What is the subscription price?

• A)$26.48
• B)$27.06
• C)$27.50
• D)$28.18
• E)$29.10

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Definitions:

Thanatos

In Freudian psychology, a concept representing the death drive or instinct, which coexists with the life instinct (Eros) and drives aggressive and destructive behavior.

Psychic Epidemics

Phenomena in which large numbers of people begin to engage in unusual behaviors that appear to have a psychological origin.

Self-Hypnotic Suggestion

A technique of self-induction to reach a state of heightened suggestibility for personal improvement or therapeutic purposes.

Substance-Induced Psychosis

A form of psychosis triggered by the abuse of drugs or alcohol, which can lead to hallucinations, delusions, and disordered thinking.