3 Question 12 (2 points) Hargrave Kitchen & Bath has a market capitalization of $200 million and 6 million shares outstanding. The company has decided to raise capital through a rights issue. All shareholders will be issued one right per share. For every five rights held by the stockholder, they can buy one share at a price of $33.25. How much money will this raise, if all shareholders exercise their rights? 6 3 Which of the following statements regarding selling shares to the public is most accurate? > 9 An IPO is typically the last time a company needs to raise capital from the public markets. The process of selling stock to the public for the first time is called a seasoned equity offering (SEO). Public companies typically have access to much larger amounts of capital through the public markets. Going public gives current shareholders less liquidity for their shares. By going public, companies prevent their private equity investors from diversifying 3 Question 12 (2 points) Hargrave Kitchen & Bath has a market capitalization of $200 million and 6 million shares outstanding. The company has decided to raise capital through a rights issue. All shareholders will be issued one right per share. For every five rights held by the stockholder, they can buy one share at a price of $33.25. How much money will this raise, if all shareholders exercise their rights? 6 3 Which of the following statements regarding selling shares to the public is most accurate? > 9 An IPO is typically the last time a company needs to raise capital from the public markets. The process of selling stock to the public for the first time is called a seasoned equity offering (SEO). Public companies typically have access to much larger amounts of capital through the public markets. Going public gives current shareholders less liquidity for their shares. By going public, companies prevent their private equity investors from diversifying