Maureen owns 20% of the common stock of the Queen Bean Corporation. The company announced plans to offer an additional 10,000 shares of common stock for sale. If Maureen exercises her preemptive rights, Queen Bean must offer her the opportunity to purchase:

Question

Quizplus · Accepted Answer

Maureen owns 20% of the current common stock, so she has preemptive rights to purchase 20% of the new offering. The new offering is 10,000 shares, so 20% of that is 2,000 shares. Therefore, Maureen has the opportunity to purchase 2,000 shares if she exercises her preemptive rights.

Maureen Owns 20% of the Common Stock of the Queen