Question
Soledad received one stock right for every two shares of stock she owned. She owned 100 shares that she purchased two years ago for $1,000.
Soledad received one stock right for every two shares of stock she owned. She owned 100 shares that she purchased two years ago for $1,000. Each of the 50 rights that she received allows her to purchase one share of stock for $15. The stock is currently selling for $22 per share. What is her basis in the 50 stock rights?
| a. | $0 | |
| b.$137.25 | ||
| c.$159.09 | ||
| d.$15 |
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ISE Introductory Financial Accounting For Business
Authors: Thomas P. Edmonds, Christopher Edmonds
2nd Edition
1260575306, 9781260575309
