A common stockholder of Milton Corporation is entitled to a pro rata share of any new stock issued by the company. If the firm plans to issue 500,000 new shares at a price of $3.50 per share and this particular stockholder currently holds 1.6 percent of all Milton's shares outstanding, how many new shares is this shareholder entitled to purchase? At what total cost?

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The Answer of A common stockholder of Milton Corporation is entitled to a pro rata share of any new stock issued by the company. If the firm plans to issue 500,000 new shares at a price of $3.50 per share and this particular stockholder currently holds 1.6 percent of all Milton's shares outstanding, how many new shares is this shareholder entitled to purchase? At what total cost?

A Common Stockholder of Milton Corporation Is Entitled to a Pro