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( Number of rights needed for a new share ) S&S wants to raise $ 1 1 . 3 million through a rights offering with

(Number of rights needed for a new share) S&S wants to raise $11.3 million through a rights offering with a subscription price of $15 a share. The company has 1.24 million shares outstanding and a market price of $17.50 a share. Each shareholder will receive one right for each share of stock owned. How many rights will be needed to purchase one new share of stock in this offering?

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