A Firm Has 1,000 Shares Outstanding and Plans to Issue

question 100

Multiple Choice

A firm has 1,000 shares outstanding and plans to issue 200 additional shares. How many rights would a present shareholder need to purchase a new share?

• A) 5
• B) 2
• C) 10
• D) 8

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Definitions:

Minimum Wages

The lowest legal salary per hour, day, or month that employers are allowed to pay their employees.

Unemployment

The situation of being without a job, while actively looking for one.

Unemployment Insurance

A social welfare program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own.

Minimum-Wage Law

Legislation that establishes the minimum amount per hour that employers must pay their employees.