Consider the situation faced by the CFO of a company with a market capitalization of $1B. The firm has 100 million shares outstanding, so the shares are trading at $10 per share. The CFO needs to raise $200M and has announced a rights issue. Each existing shareholder is sent one right for every share he or she owns. The CFO has not decided how many rights he will require to purchase a share of new stock. He is considering two options.

Option A: He will require 4 rights to purchase one share at a price of $8 per share; and

Option B: He will require 5 rights to purchase two new shares at a price of $5 per share.

How much money will Option A raise?

		$100,000,000
		$200,000,000
		$300,000,000
		$400,000,000