Big Box retailing has a market capitalization of $200 million and 10 million shares outstanding. In order to finance its growth, the management of Big Box plans to raise further capital through a rights issue. All shareholders will be issued one right per share. For every eight rights held by the stockholder, they can buy one share at a price of $10.00. How much money will this raise, if all shareholders exercise their rights?

Question 5 options:

$8 million

$12.5 million

$17 millon

$5 million

$2.5 million