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Author Question: Big Box retailing has a market capitalization of $500 million and 2 million shares outstanding. In ... (Read 53 times)

acc299

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Big Box retailing has a market capitalization of $500 million and 2 million shares outstanding. In order to finance its growth, the management of Big Box plans to raise further capital through a rights issue. All shareholders will be issued ten rights to purchase ten shares at a price of $1.50 per share. How much money will this raise, if all shareholders exercise their rights?
◦ $60 million
◦ $15 million
◦ $45 million
◦ $30 million


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Marked as best answer by acc299 on Jul 9, 2019

eliasc0401

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