TacosRus has decided to raise $6.665 million in the capital by issuing 500,000 new shares of...

TacosRus has decided to raise $6.665 million in the capital by issuing 500,000 new shares of common stock in a rights offering. Currently, there are 1.5 million shares outstanding. What will each current shareholder have to provide to purchase one share of this new offering?

Expert Solution

Calculate the amount each shareholder has to provide for purchase one share in new offering
Amount to be provided	Amount to be raised/No of shares issued
Amount to be provided	6.665 million/1500000
Amount to be provided	6665000/1500000
Amount to be provided	$4.44

Thus, each shareholder will have to be provide $4.44

jeff jeffy answered 2 years ago

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