The equity section of Smith Corporation’s Statement of Financial Position is presented below. The common shareholders of Smith Corporation have preemptive rights. If Smith Corporation issues 400,000 additional shares of common stock at $6 per share, a current holder of 20,000 shares of Smith Corporation’s common stock must be given the option to buy A. 1,000 additional shares.
B. 3,774 additional shares.
C. 4,000 additional shares.
D. 3,333 additional shares. |