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ABC Manufacturing has decided to raise $20 million via rights offering. The company will issue one right for each share of stock outstanding. The subscription

ABC Manufacturing has decided to raise $20 million via rights offering. The company will issue one right for each share of stock outstanding. The subscription price is set at $20 per share. The current market price of the stock is $40 and there are 4,000,000 shares currently outstanding. How many rights are needed to buy one new share?

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