Free Series 7 Exam Braindumps

A corporation makes a rights offering to raise $10 mil ion of new capital by issuing one mil ion
shares of common stock. If it already has six mil ion shares outstanding at the time of the
offering.
What is the subscription price per share?

A. $4
B. $6
C. $7
D. $10

Answer(s): D
Explanation:
$10. There are one mil ion shares divided into the $10 mil ion of new capital.

QUESTION: 5
A corporation makes a rights offering to raise $10 mil ion of new capital by issuing one mil ion
shares of common stock. If it already has six mil ion shares outstanding at the time of the
offering.
What subscription ratio is the corporation establishing for each new share?

A. 6 rights per share
B. 10 rights per share
C. 6 mil ion rights per share
D. 10 mil ion rights per share

Answer(s): A
Explanation:
6 rights per share. Each share receives a right and there are six mil ion shares receiving rights
to one mil ion new shares. So six rights are required for one share.

QUESTION: 6
Bubba owns stock with cumulative voting rights. There are five vacancies on a board and he
owns 100 shares of stock. Bubba is entitled to cast the following votes:

A. a total of 100 votes
B. a total of 100 votes per
C. a total of 500 votes
D. you are not allowed to vote

Answer(s): C
Explanation:
500 votes. Under cumulative voting, the number of directors is multiplied by the number of
shares owned. The votes may be cast all for a single director or divided in any manner among
the directors.
https://Xcerts.com
3