Question
DDD's rights currently trade at $7.60. Each right can be used to buy one share of DDD at $27.92 based on a subscription ratio of
DDD's rights currently trade at $7.60. Each right can be used to buy one share of DDD at $27.92 based on a subscription ratio of 5 rights for each share purchased. What is the DDD's current cum rights share price?
| A. | $73.52 | |
| B. | $65.92 | |
| C. | $35.52 | |
| D. | $87.50 |
Given the following information, what is the variance for this stock?
| State of Economy | Probability | Rate of Return |
| Boom | 0.20 | 0.17 |
| Normal | 0.70 | 0.09 |
| Recession | 0.10 | -0.11 |
| A. | .005329 | |
| B. | .005264 | |
| C. | .005112 | |
| D. | .004872 | |
| E. | .004900 |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
