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Pandora, Inc., makes a rights issue at a subscription price of $5 a share. One new share can be purchased for every two shares held.

Pandora, Inc., makes a rights issue at a subscription price of $5 a share. One new share can be purchased for every two shares held. Before the issue there were 13 million shares outstanding and the share price was $8. What is the new money raised and expected stock price after rigths are issued?

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