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c) Eileen owns 27,000 shares of stock in the Film Production Company. Currently, there are 800,000 shares of stock outstanding. The company has just announced
c) Eileen owns 27,000 shares of stock in the Film Production Company. Currently, there are 800,000 shares of stock outstanding. The company has just announced a rights offering whereby 100,000 shares are being offered for sale at a subscription price of $20 a share. The current stock price is $28 a share. Assume that Eileen sells her rights and that all rights are exercised. What will Eileen's ownership percentage in the Film Production Company be after the rights are exercised?
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