TOYSrYOU plans to raise $8 million in a rights offering. If management sets the subscription price at $2 per share and the current market price is $2.50 per share, how many shares need to be sold in
The rights offering?

Question

Quizplus · Accepted Answer

To raise $8 million at a subscription price of $2 per share, TOYSrYOU needs to sell 4,000,000 shares ($8,000,000 / $2 per share = 4,000,000 shares).

TOYSrYOU Plans to Raise $8 Million in a Rights Offering