A corporate issuer has 1,000,000 shares of common stock outstanding to 100,000 shareholders. The issuer plans a rights offering to sell an additional 500,000 shares of stock. Which TWO of the following statements are TRUE? I. The corporation will issue 100,000 rights II. The corporation will issue 1,000,000 rights III. Each right will enable a shareholder to purchase 5 shares IV. It will take two rights to purchase one share of stock

A corporate issuer has 1,000,000 shares of common stock outstanding to 100,000 shareholders. The issuer plans a rights offering to sell an additional 500,000 shares of stock. Which TWO of the following statements are TRUE? I. The corporation will issue 100,000 rights II. The corporation will issue 1,000,000 rights III. Each right will enable a shareholder to purchase 5 shares IV. It will take two rights to purchase one share of stock

A corporate issuer has 1,000,000 shares of common stock outstanding to 100,000 shareholders. The issuer plans a rights offering to sell an additional 500,000 shares of stock. Which TWO of the following statements are TRUE?
I. The corporation will issue 100,000 rights
II. The corporation will issue 1,000,000 rights
III. Each right will enable a shareholder to purchase 5 shares
IV. It will take two rights to purchase one share of stock






A) I & III
B) I & IV
C) II & III
D) II & IV








Answer: D