5. 14.

Selling rights [LO 15.4] Jerangle Juice Company wants to raise $4.7 million via a rights offering. The company currently has 530 000 shares of ordinary shares outstanding that sell for $55 per share. Its underwriter has set a subscription price of $30 per share and will charge the company a spread of 6 per cent. If you currently own 5 000 shares in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?