1. Sue owns 2000 shares of the 20 million outstanding common shares of ABC Corp. ABC stockholders have preemptive rights. Now, ABC decides to sell 2 million new common shares through a rights offering. How many rights will Sue receive?
a. 200
b. 0.20
c. 0.10
d. 20
2. Suppose we employ a "price-weighted" methodology to construct and track a two-stock index based on Stocks X and Y. Stock X has an initial price of $10 and there are 10 million shares outstanding. Stock Y has an initial price of $20 and there are 40 million shares outstanding. One month later, Stock Xs price is $12 and Stock Ys price is still $20. The shares outstanding remain the same. What is the percentage change in our price-weighted index over the one-month period?
a. 0
b. 20.00%
c. 6.67%
d. 2.22%
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