Film production company be after the rights are exercised

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Eileen owns 27,000 shares of stock in the Film Production Company. Currently, there are 800,000 shares of stock outstanding. The company has just announced a rights offering whereby 100,000 shares are being offered for sale at a subscription price of $20 a share. The current stock price is $28 a share. Assume that Eileen sells her rights and that all rights are exercised. What will Eileen's ownership percentage in the Film Production Company be after the rights are exercised?

Reference no: EM131868019

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