Valiant Industries Has 20 Million Shares Outstanding at a Price

question 72

Multiple Choice

Valiant Industries has 20 million shares outstanding at a price of $28 per share. The company wishes to raise more money and plans to do so through a rights issue. Every existing shareholder will receive one right for each share held. For every four rights held by the shareholder, they can buy one share at a price of $28. If all rights are exercised, how much money will be raised in this offer?

• A)$70 million
• B)$140 million
• C)$165 million
• D)$120 million

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