Question 9 options:

Joffrey Corporation, a publicly traded company, is requiring an additional $5,000,000. The company has decided that a rights offering could raise the funds that are required. Currently there are 300,000 outstanding common shares and the market price of $55.00 per share. Each shareholder would receive 1 right for every share they own. The subscription price will be $50.00. This means that 100,000 new shares will be issued ($5,000,000/$50). Given this information, 300,000 old shares/100,000 new shares would mean 3 rights plus the subscription price will be required to get 1 new share.

Sansa Stark is a shareholder and has 6,000 shares of Joffreys Corporation and $260,000 cash in her bank account. She is Queen of the North!

If Sansa does nothing, how much does she lose (if any)? Round to the nearest dollar. NO NEGATIVE REQUIRED.