Atlas Corp. wants to raise $2.6 million via a rights offering. The company currently has 450,000 shares of common stock outstanding that sell for $26 per share. Its underwriter has set a subscription price of $22 per share and will charge the company a spread of 7 percent. Assume you currently own 1,200 shares of this stock and decide not to participate in the rights offering. How much money should you receive for selling all of your rights?

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To find the value of the rights, first calculate the number of new shares: $2,600,000 / $22 = 118,182 shares. The total number of shares after the offering will be 450,000 + 118,182 = 568,182 shares. The ex-rights price is calculated as [(450,000 * $26) + (118,182 * $22)] / 568,182 = $25.07. The value of a right is the difference between the current price and the ex-rights price: $26 - $25.07 = $0.93. Since you own 1,200 shares, you have 1,200 rights. Selling all rights gives you 1,200 * $0.93 = $1,116. However, considering the 7% spread, the net amount is $1,116 * (1 - 0.07) = $1,057.