Big Box retailing has a market capitalization of $ 400 million and 20 million shares outstanding. In
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Question:
Big Box retailing has a market capitalization of $ 400 million and 20 million shares outstanding. In order to finance itsgrowth, the management of Big Box plans to raise further capital through a rights issue. All shareholders will be issued ten rights to purchase a new share at a price of $ 1.50What will the price of a share be after theSEO, if all shareholders exercise theirrights?
a.) 2.39
b.)2.07
c.)3.18
d.)2.23
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