Mountain Mining requires $3.3 million to expand its current operations and has decided to raise these funds through a rights offering at a subscription price of $18 a share. The current market price of the company's stock is $24.70 a share. How many shares of stock must be sold to fund the expansion plans?

Question

Quizplus · Accepted Answer

To determine the number of shares required to raise $3.3 million, we need to divide the amount by the subscription price:
$3,300,000 ÷ $18 = 183,333.33
Therefore, Mountain Mining needs to sell 183,333 shares of stock to fund its expansion plans.

Mountain Mining Requires $3