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McNally Inc. is seeking to raise an additional $10 million through a rights offering with a subscription price of $10 per share. It has correctly
McNally Inc. is seeking to raise an additional $10 million through a rights offering with a subscription price of $10 per share. It has correctly concluded that, as a result of the rights offering, the firm's share price will fall from $17.50 (rights-on) to $15 (ex-rights). If the rights offering goes ahead, what will be the new total market value of the firm's equity?
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