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Suppose you own 34,000 shares of common stock in a firm with 2.5 million total shares outstanding. The firm announces a plan to sell an
Suppose you own 34,000 shares of common stock in a firm with 2.5 million total shares outstanding. The firm announces a plan to sell an additional 1.2 million shares through a rights offering. The market value of the stock is $49.93 before the rights offering and the new shares are being offered to existing shareholders at a $6 discount. If you exercise your preemptive rights, how many of the new shares can you purchase? (Round answer to a whole number, e.g., 123,456)
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