(Answered) Company xyz is issuing 500000 new shares in a rights offer

Finance

Company XYZ is issuing 500,000 new shares in a rights offer. The company wants to ensure that the ex-rights share price is $75. Before the rights offer, the company has two million shares outstanding. If the rights were each priced at $10, what is the subscription price?

Select one:

a. $20

b. $25

c. $30

d. $35

e. $40

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