Problem:
Use the following information for the next two questions: Ralph owns 60,000 shares of common stock in a DSD Corp. with 3 million total shares outstanding. Ralph's current ownership percentage is 2%. DSD Corp, announces a plan to sell an additional 1.2 million shares through a rights offering. The market value of the stock is $20 before the rights offering and the new shares are being offered to existing shareholders at a $5 discount. Suppose Ralph exercises his preemptive rights. How many shares will he receive? 60,000 shares B 24,000 shares C 18,000 shares 84,000 shares