Jen owns 5,500 of the 350,000 shares of TC Inc. The company has just announced a rights offering whereby 40,000 shares are being offered at a subscription price of $12 a share. The current stock price is $16 a share. Assume she sells her rights and that all rights are exercised. What percentage of the firm will she own after the rights offering?" 14.10 percent 1.35 percent 0.86 percent 0.75 percent 1.27 percent

Jen owns 5,500 of the 350,000 shares of TC Inc. The company has just announced a rights offering whereby 40,000 shares are being offered at a subscription price of $12 a share. The current stock price is $16 a share. Assume she sells her rights and that all rights are exercised. What percentage of the firm will she own after the rights offering?" 14.10 percent 1.35 percent 0.86 percent 0.75 percent 1.27 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 12P

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