You currently own 6 percent of the 2 million outstanding shares of webster mills. the company has just announced a rights offering with a subscription price of $50. one right will be issued for each share of outstanding stock. this offering will provide $18 million of new financing for the firm, ignoring all issue costs. assume that all rights are exercised. what will be your new ownership position if you opted to sell your rights rather than exercise them personally?

a. 5.08
b. 4.58
c. 4.83
d. 5.33

Describe how to write a main idea expressed as a bottom-line statement

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.

Heather has been an active participant in a defined benefit plan for 19 years. during her last 6 years of employment, heather earned $42,000, $48,000, $56,000, $80,000, $89,000, and $108,000, respectively (representing her highest-income years). calculate heather’s maximum allowable benefits from her qualified plan (assume that there are fewer than 100 participants). assume that heather’s average compensation for her three highest years is $199,700. calculate her maximum allowable benefits.