Luther Industries currently has 100 million shares of stock outstanding at a price of $25 per share. The company would like to raise money and has announced a rights issue

Every existing shareholder will be sent one right per share of stock that he or she owns. The company plans to require twenty rights to purchase one share at a price of $30 per share. The amount of money that Luther will raise through its rights offering is closest to ________.
A) $750 million
B) $187.5 million
C) $150 million
D) $600 million


Answer: C

Business

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Quality hospitality organizations build the service production processes based on ______.

a. their own perspective b. the guest’s perspective c. employee convenience d. efficiency

Business

Bobzien, Inc., manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-HoursProduct B7300  5.0  1,500 Product Z5800  3.0  2,400 Total direct labor-hours      3,900 The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected Activity???Product B7Product

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Business

In a single-period system, if too much is ordered but not sold, the company may have to ______.

a. sell the excess at a discounted price b. open new distribution centers c. identify new markets d. give it away to its employees

Business

Companies that use the geocentric staffing model:

A. heavily employ host-country nationals to better deal with local-market conditions. B. have a common HR unit in their parent countries to handle employment issues for all foreign subsidiaries. C. undertake every aspect of their human resource management process from an international perspective. D. primarily hire home-country nationals to fill higher-level positions in their foreign offices.

Business