Cranbury Crenellation plc, a listed company, has a total ordinary share capital of £600 000 in 50p shares, which are currently trading at 102p each.The company needs to raise some more capital, and its financial advisers are proposing a rights issue of 1 for 3 at a price of 95p per share. How much will the company raise if the rights issue is successful?

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The company has £600,000 in 50p shares, meaning there are 1,200,000 shares (600,000 / 0.50). A 1 for 3 rights issue means 1 new share for every 3 existing shares, so 400,000 new shares will be issued (1,200,000 / 3). At 95p per share, the company will raise £380,000 (400,000 * 0.95).

Cranbury Crenellation Plc, a Listed Company, Has a Total Ordinary