A common stockholder of Milton Corporation is entitled to a pro rata share of any new stock

Question:

A common stockholder of Milton 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 stock holder currently holds 1.6% of all Milton's shares outstanding, how many new shares is this shareholder entitled to purchase? At what total costs

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...