XYZ Plc is making a rights issue. The current market price of the shares is 350 pence and the directors are proposing to make the rights issue at a price of 205 pence per share. The par value of the ordinary shares is 25 pence so the shares are being issued at a premium of 180 pence each. 12,000,000 ordinary shares are to be issued in the rights issue. How much cash will the rights issue raise?
A) £3,000,000
B) £21,600,000
C) £24,600,000
D) £42,000,000
Correct Answer:
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