A company with 870,000 shares outstanding is considering a rights offering. The company's shares currently sell for $30 per share. If the company proceeds with the rights offering, 200,000 new shares will be issued at a subscription price of $25 per share. The company is looking to raise $5,000,000.

How many rights will it take to buy a new share via this rights offering if the company proceeds?

Answer rating: 100% (QA)

To buy one new share the shareholder needs to subscribe to a certain number ... View the full answer