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A Corporation Makes a Rights Offering to Raise $10 Million

Question 3

Multiple Choice

A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of common stock. If it already has six million shares outstanding at the time of the offering. How many rights will the corporation distribute to its shareholders?


A) one million
B) six million
C) ten million
D) sixteen million

Correct Answer:

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