What will be the new stock price after the tights issues

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Reference no: EM131178356

Big Box retailing has a market capitalization of $500 million and 20 million shares outstanding. In order to finance its growth, the management of Big Box plans to raise further capital through a rights issue. For every ten rights, shareholders can purchase one share at $15 per share. What will be the new stock price after the tights issues, if all shareholders exercise their rights? A) $15 B) $25 C) $24 D) $20

Reference no: EM131178356

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