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Miya owns 14,000 shares of Xie Clothing. Currently, there are 1.6 million shares of stock outstanding. The company has just announced a rights offering whereby
Miya owns 14,000 shares of Xie Clothing. Currently, there are 1.6 million shares of stock outstanding. The company has just announced a rights offering whereby 200,000 shares are being offered for sale at a subscription price of $14 a share. The current stock price is $16 a share. Assume that Miya sells her rights and that all rights are exercised. What percentage of the firm will Miya own after the rights offering?
A. | 0.78 percent | |
B. | 0.75 percent | |
C. | 0.86 percent | |
D. | 0.67 percent |
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