You own 1000 shares in a company ABC plc. Purchased at 100p per share Currently trading at 200p per share. The company currently has 1,000,000 shares in circulation and needs to raise 375,000 (before expenses). ABC proposes to issue 250,000 new ordinary shares. Existing shareholders are offered the right to purchase one new share in ABC plc for every four shares they currently hold (i.e., a 1:4 Rights Issue). And to encourage take up, the new shares are offered to the existing shareholders at a discounted price of 150p. Rights which are not taken up will be sold for the benefit of the shareholder