Ask Question
BusinessBusiness
Today, 15:41

A customer owns 210 shares of ABC common stock. ABC declares a rights offering, with the terms being that for every 20 rights tendered, a shareholder may purchase one additional share at $20 per share. Any fractional rights holding may be rounded up to buy an additional share. If this shareholder wishes to subscribe, which statement is TRUE?

+2
Answers (1)
  1. Today, 16:02
    0
    B. The shareholder can buy a maximum of 11 shares by paying $220

    Explanation:

    There is an option below the question ask for details:

    The computation is shown below:

    First, we have to determine the fraction value which is shown below:

    = Total shares : rights shares

    = 210 shares : 20 shares

    = 10.5 shares rounded off = 11 shares

    Now for additional shares, the total value would be

    = Number of shares * per share value

    = 11 shares * $20

    = $220
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A customer owns 210 shares of ABC common stock. ABC declares a rights offering, with the terms being that for every 20 rights tendered, a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Daisy Company manufactures dog collars. The following selected data relates to Daisy? Company's budgeted sales and inventory levels of the dog collars for the upcoming?
Answers (1)
Pods changed from a sole proprietorship to a corporation. what would be a major reason for making this ownership change?
Answers (1)
True or False: The statistical difference between a process operating at a 5 sigma level and a process operating at a 6 sigma level is markedly different when it comes to the number of defects present.
Answers (1)
Describes how a monopoly controls an industry
Answers (1)
Suppose that maldonia and sylvania agree to trade. each country focuses its resources on producing only the good in which it has a comparative advantage. the countries decide to exchange 12 million pounds of potatoes for 12 million pounds of coffee.
Answers (1)
New Questions in Business
When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity of demand coefficient for this product is
Answers (1)
Which of the following would be a closed question? What interests you about this job? Why did you decide to change career fields? Where do you see yourself in five years? When did you move here?
Answers (1)
Hutchinson Corporation has zero debt - it is financed only with common equity. Its total assets are $330,000.
Answers (1)
A customer owns 210 shares of ABC common stock. ABC declares a rights offering, with the terms being that for every 20 rights tendered, a shareholder may purchase one additional share at $20 per share.
Answers (1)
A 30-year 6% callable corporate bond with a face value of $10,000 was issued in June of 2000. It is now June of 2015, the call protection has expired, and the bond can be immediately called at a call price of 102% of par.
Answers (1)
Home » Business » A customer owns 210 shares of ABC common stock. ABC declares a rights offering, with the terms being that for every 20 rights tendered, a shareholder may purchase one additional share at $20 per share.
Sign Up Forgot Password?