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Lane owns 100,000 shares of common stock in a firm with 26 million total shares outstanding. The firm announces a plan to sell an additional
Lane owns 100,000 shares of common stock in a firm with 26 million total shares outstanding. The firm announces a plan to sell an additional 3 million shares through a rights offering. The market value of the stock is $45 before the rights offering and the new shares are being offered to existing shareholders at a $4 discount. If Lane exercises his preemptive rights, how many of the new shares can he purchase
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