You would like to expand your firm's operations into a neighboring province but you need $4 million in additional funding to do this. After talking with your key shareholders, you decide to raise the necessary funds through a rights offering with a subscription price of $30 a share. The current market price of your stock is $38 a share. How many shares of stock will you need to sell through the rights offering to fund your expansion plans?

Multiple Choice

• 133,333 shares

• 105,263 shares

• 125,000 shares

• 250,000 shares

• 500,000 shares