A company wants to raise 50 million the subscription price


Question: A company wants to raise $50 million. The subscription price is $23, and the current stock price is $27. The firm currently has 3,500,000 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 one share?

4. What is the value of a right?

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Finance Basics: A company wants to raise 50 million the subscription price
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