Tomas currently owns 300 shares of APP, Inc. that have a total market value of $5,460. What will the value of his total holdings be if he exercises the rights offer he just received of $14 plus 2 rights?

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Tomas currently owns 300 shares valued at $5,460, which means each share is worth $18.20 ($5,460 / 300). If he exercises the rights offer, he can buy additional shares at $14 each plus 2 rights. Assuming he uses all his rights, he can buy 150 additional shares (since 300 shares give him 300 rights, and 2 rights are needed per new share). The cost for these 150 shares is $2,100 (150 shares x $14). Adding this to the current value of $5,460, the total value of his holdings will be $7,560.

Tomas Currently Owns 300 Shares of APP, Inc