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A Pro-Rata Share Rights Offer of 1: 5 Gives Existing

Question 48

Multiple Choice

A pro-rata share rights offer of 1: 5 gives existing shareholders:


A) the right to purchase one new share for every five shares held.
B) the right to purchase five new shares for every one share held.
C) the right to purchase one share for every 1/5 shares held.
D) the right to purchase 10 shares for every five shares held.

Correct Answer:

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