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Scubapro Corporation currently has 500,000 shares outstanding and plans to issue 200,000 more shares in a seasoned equity offering. The current shareholders have preemptive rights on any new issue of stock by Scubapro Corporation. An investor with 20,000 shares who exercises his preemptive rights on the new stock issue will have the right to buy how many stocks?

200,000 shares

120,000 shares

80,000 shares

12,000 shares

8,000 shares

Basic Finance, Finance

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