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Allen Owns 500 of the 5,000 Shares Outstanding of General

Question 57

Multiple Choice

Allen owns 500 of the 5,000 shares outstanding of General Myopics.GM plans to issue 600 new shares.If Allen has preemptive rights,he may buy:


A) all 600 shares before anyone else.
B) 600 shares at the same price he paid for the other stock.
C) 6 shares at a discount of 10%.
D) None of these.

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