126. Ben and Jennie's wants to expand their operations into the cookie business. It needs $20 million to build a bakery and establish a distribution system. Currently, the firm has 1,300,000 shares of stock outstanding. The market price of the stock is $34 a share. Ben and Jennie's decides to raise the needed capital through a rights offering wherein every stockholder will receive one right for every share of stock they own. The subscription price will be $28. How many rights will be needed to purchase one new share of stock in this offering? A. 1.21 rights B. 1.27 rights C. 1.54 rights D. 1.82 rights E. 2.21 rights

119. You own 5 % or 4,000 shares of Tonka, Inc. These shares have a total market value of $92,000. By what percentage will the total value of your investment in Tonka change if the company sells an additional 10,000 shares of stock at $21 a share and you do not buy any? A. -.96 % B. -.94 % C. -.92 % D. .00 % E. .02 %

120. You own 8 % or 36,000 shares of Selma, Inc. Your shares have a total market value of $846,000. By what percentage will the total value of your investment in Selma change if the company sells an additional 50,000 shares of stock at $20 a share and you do not buy any? A. -.35 % B. -.48 % C. -.93 % D. -1.38 % E. -1.49 %