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How much money will the second approach raise

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A CFO of a company with a market capitalization of $1B. The firm has 100 million shares outstanding, so the shares are trading at $12.73 per share. Each existing shareholder is sent one right for every share he or she owns. The CFO has not decided how many rights he will require to purchase a share of new stock. He will require either 2 rights to purchase one share at a price of $8.37 per share, or 4 rights to purchase two new shares at a price of $7.06 per share. How much money will the second approach raise?

Reference no: EM132643646

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