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A week ago
Big Box retailing has a market capitalization of $500 million and 2 million shares outstanding. In order to finance its growth, the management of Big Box plans to raise further capital through a rights issue. All shareholders will be issued ten rights to purchase ten shares at a price of $1.50 per share. How much money will this raise, if all shareholders exercise their rights?

▸ $60 million

▸ $15 million

▸ $45 million

▸ $30 million
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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$30 million
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