Hargrave Kitchen & Bath has 6 million shares outstanding at a price of $33.25 per share. The company has decided to raise capital through a rights issue. All shareholders will be issued one right per share. For every five rights held by the stockholder, they can buy one share at a price of $33.25. How much money will this raise, if all shareholders exercise their rights? Round to one decimal place. A. $30.0 million B. $33.3 million C. $39.9 million D. $234.4 million OE. $199.5 million

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hargrave Kitchen & Bath has 6 million shares outstanding at a price of $33.25 per share. The company has decided to
raise capital through a rights issue. All shareholders will be issued one right per share. For every five rights held by
the stockholder, they can buy one share at a price of $33.25. How much money will this raise, if all shareholders
exercise their rights? Round to one decimal place.
A. $30.0 million
B. $33.3 million
C. $39.9 million
D. $234.4 million
E. $199.5 million
Transcribed Image Text:Hargrave Kitchen & Bath has 6 million shares outstanding at a price of $33.25 per share. The company has decided to raise capital through a rights issue. All shareholders will be issued one right per share. For every five rights held by the stockholder, they can buy one share at a price of $33.25. How much money will this raise, if all shareholders exercise their rights? Round to one decimal place. A. $30.0 million B. $33.3 million C. $39.9 million D. $234.4 million E. $199.5 million
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