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Rights shares bring ______ to the company’s coffers. - Commerce

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Question

Rights shares bring ______ to the company’s coffers.

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Solution

Rights shares bring cash to the company’s coffers.

Explanation:

Rights shares bring cash into the company’s coffers because when a company issues rights shares, existing shareholders pay money to purchase those shares. This payment goes directly to the company, helping it raise cash for its needs.

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Chapter 3: Sources of Financial for a Join stock Company - QUESTIONS [Page 93]

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C. B. Gupta Commerce Volume 2 [English] Class 12 ISC
Chapter 3 Sources of Financial for a Join stock Company
QUESTIONS | Q 34. | Page 93
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