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NEW QUESTION: 1
A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of
common stock. If it already has six million shares outstanding at the time of the offering. How many rights
will the corporation distribute to its shareholders?
A. one million
B. ten million
C. sixteen million
D. six million
Answer: D
Explanation:
six million. One right for each outstanding share is distributed.