Taskin owns 1,000 shares of stock in the Tiger Roar Company. Currently, there are 850,000 shares of stock outstanding. The company has just announced a rights offering whereby 225,000 shares are being offered for sale at a subscription price of $25 a share. The current stock price is $32.50 a share. Assume that Taskin sells his rights and that all rights are exercised. What will Taskin's ownership percentage in the Tiger Roar Company be after the rights are exercised?

Answer rating: 100% (QA)

Taskin initially owns 1000 shares out of 850000 therefore his per... View the full answer