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Valiant Industries has 30 million shares of stock outstanding at a price of $25.44 per share....

Valiant Industries has 30 million shares of stock outstanding at a price of $25.44 per share. The company wishes to raise more money and plans to do so through a rights issue. Every existing stockholder will receive one right for each share of stock held. For every six rights held by the stockholder, they can buy one share at a price of $24.00 per share. If all rights are exercised, how much money will be raised in this offer?

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Answer #1

Amount raised = number of shares outstanding*offer terms*offer price

=30*1/6*24=120 m

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