Seaports United wants to raise $35 million through a rights offering to build a new seaport on the east coast. How many shares of stock will the ﬁrm need to sell through the rights offering if the
Current stock price is $47 a share and the subscription price is $42 a share?

Question

Quizplus · Accepted Answer

To raise $35 million at a subscription price of $42 per share, the firm needs to sell 833,334 shares ($35,000,000 / $42 = 833,333.33, rounded up to the nearest whole share).

Seaports United Wants to Raise $35 Million Through a Rights