Mister Noodle wants to raise $24 million through a rights offering. The current market price of the stock is $18, the subscription price is $16, and there are 4 million shares of stock outstanding. How many shares need to be sold in the rights offering?

Question

Quizplus · Accepted Answer

To raise $24 million at a subscription price of $16 per share, Mister Noodle needs to sell 1.5 million shares ($24 million / $16 per share = 1.5 million shares).

Mister Noodle Wants to Raise $24 Million Through a Rights