For Preference Shareholders,what Is the Amount of the Actual Refund

question 23

Multiple Choice

For preference shareholders,what is the amount of the actual refund or call?

• A)a refund of $8 750;
• B)a call of $8 750;
• C)a refund of $5 000;
• D)a call of $11 250.

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Definitions:

Rights Offering

A method by which companies raise capital, by giving existing shareholders the right to buy new shares at a discount before they are offered to the public.

Stock Price

The current market price at which a share of a company is bought or sold, reflecting the market's perception of its value at any given time.

Existing Stockholders

Individuals or entities that currently own shares in a company.

Subscription Price

The cost at which existing shareholders can buy additional shares of a company, often at a discount.