The Overland Corporation Intends to Issue 50,000 New Shares to Raise

Multiple Choice

The Overland Corporation intends to issue 50,000 new shares to raise funds for expansion of current plant facilities.The current share price is $40 and there are 500,000 shares outstanding.The number of rights needed to buy a share of stock should be:

A) 1
B) 10
C) 40
D) 400
E) indeterminate without the subscription price.