TOTAL 10 Marks\ Sam Corp. wants to raise

$4,185,000

via a rights offering. The company currently has 810,000 shares of common stock outstanding that sell for

$51

per share. Its underwriter has set a subscription price of

$31

per share and will charge Sam corp. a 5 percent spread. If you currently own 8,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?

Sam Corp. wants to raise $4,185,000 via a rights offering. The company currently has 810,000 shares of common stock outstanding that sell for $51 per share. Its underwriter has set a subscription price of $31 per share and will charge Sam corp. a 5 percent spread. If you currently own 8,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights