Jen owns 7,500 of the 480,000 shares of TC Inc. The company has just announced a rights offering whereby 75,000 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?
A) 1.35 percent
B) .75 percent
C) .86 percent
D) 1.27 percent
E) 1.00 percent
Correct Answer:
Verified
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