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The Benefit of a Rights Offering to Shareholders Is Principally

Question 167

Multiple Choice

The benefit of a rights offering to shareholders is principally the:


A) Option of limiting the number of shares outstanding.
B) Higher dividend rate associated with the right.
C) Ability to maintain their current ownership %age.
D) Option of selling the rights if they so choose.
E) Option of purchasing one additional share of stock for every one right granted.

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