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Exam Series 7 All Questions

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Exam Series 7 topic 1 question 4 discussion

Actual exam question from FINRA's Series 7
Question #: 4
Topic #: 1
[All Series 7 Questions]

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.
What is the subscription price per share?

  • A. $4
  • B. $6
  • C. $7
  • D. $10
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Suggested Answer: D 🗳️
$10. There are one million shares divided into the $10 million of new capital.

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Bobasega
1 year, 10 months ago
Why not just ask how much the new offering of shares will be without the misdirection? I h the real world clients will expect straightforward answers or questions. This is not a pop quiz but serious training in the finance world.
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