Tangible Technologies Has a Market Capitalization of $150 Million and 8

Tangible Technologies has a market capitalization of $150 million and 8 million shares outstanding.In order to finance its growth,the firm's management plans to raise further capital through a rights issue.All shareholders will be issued one right per share.For every 4 rights held by a stockholder,they can purchase one share at a price of $15 per share.How much money will this raise,if all shareholders exercise their rights?

A) $30 million
B) $150 million
C) $120 million
D) $15 million
E) $37.5 million

Correct Answer:

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