Rights Offering II

International Sealants Inc. is considering a rights offering to raise new equity capital.

The firm currently has $1,375,000$ shares outstanding that are selling for $$42\mathrm{.}50$ per

share. The company wants to raise $$10,000,000$ in new equity funding. They plan to

price shares in the rights offering at $$35.$

What will be the market value of right based on the current market price? $($Present

your answer in dollars to two decimal places, e$.$g$.,2\mathrm{.}17.)$

Numeric Response