A company has decided to raise $20 million in capital by issuing 500,000 new shares of common stock in a rights offering. Currently there are 1.5 million shares outstanding. What will each current shareholder have to provide to purchase one share of this new offering?
A) $13.33 plus.33 rights
B) $13.33 plus 3 rights
C) $30.00 plus.33 rights
D) $40.00 plus.33 rights
E) $40.00 plus 3 rights
Correct Answer:
Verified
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