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Chambers Industries has a market capitalization of $800 million and 250 million shares outstanding. The management of this firm plans to raise further capital through

Chambers Industries has a market capitalization of $800 million and 250 million shares outstanding. The management of this firm plans to raise further capital through a rights issue. Every existing stockholder will receive one right for each share of stock held. For every four rights held by the stockholder, they can buy three shares at a price of $2 per share. If all rights are exercised, how much money will be raised in this offer?

$125 million

$250 million

$375 million

$300 million

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