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Bancroft Corporation currently has 1 2 million shares of stock outstanding at a price of $ 4 0 per share. The company would like to

Bancroft Corporation currently has 12 million shares of stock outstanding at a price of $ 40 per share. The company would like to raise money and has announced a rights issue. Every existing shareholder will be sent three rights per share of stock that he or she owns. The company plans to require 10 rights to purchase one share at a price of $ 40 per share. How much money will it raise if all rights are exercised?

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