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QUESTION 7 stock and so be able to raise the $ 5 0 0 Millions of USDs? QUESTION 7 Consider the situation faced by the

QUESTION 7 stock and so be able to raise the $500 Millions of USDs?"
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QUESTION 7 "Consider the situation faced by the CFO of a company with a market capitalization of 5700 Millions of LISD, e.g. the firm has 100 million shares outstanding, so the shares are trading at 57 per share. The CFO needs to raise 5500 Millions of USDs and announces a rights issue. Each existing shareholder is sent 5 right for every share he or she owns. The CFO has not decided how many rights will be required to purchase a share of new stock. At the current price per share, what is the maximum amount of rights the CFO can require stockholders for purchasing a share of new stock and so be able to raise the 3500 Millions of USDs?"

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