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What is the total cost of the new investment

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Reference no: EM132667203

On September 30, 2020, the entity received 100,000 shares rights to purchase 20,000 shares at P135 per share. The share rights had an expiration date of February 1, 2021. On September 30, 2020, each share had a market value of P171 and the share right had a market value of P9.

Problem 1: What is the total cost of the new investment if 40% of the share rights are exercised?

Group of answer choices

Option 1: 3,600,000

Option 2: 2,700,000

Option 3: 1,440,000

Option 4: 3,060,000

Reference no: EM132667203

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