Big Box Retailing Has a Market Capitalization of $500 Million

Big Box retailing has a market capitalization of $500 million and 4 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 $1.00 per share. How much money will this raise, if all shareholders exercise their rights?

A) $20.0 million
B) $40.0 million
C) $60.0 million
D) $80.0 million