A company wants to raise 100 million the subscription price


Question: A company wants to raise $100 million. The subscription price is $17, and the current stock price is $27. The firm currently has 2,500,000 shares outstanding.

1. What is the current market capitalization?

2. How many shares must be issued?

3. How many rights will it take to purchase a share?

4. What is the value of a right?

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Finance Basics: A company wants to raise 100 million the subscription price
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