Looking confirmation on this one. I think it is option C. What do you think?
12. Firm Y currently has 2 million shares outstanding trading at €5.80 per share. The company has announced a rights issue at a subscription price of €4.50 per share, and the number of shares to be issued is 400 000. What is the impact of this rights issue on the value of the firm? Yrityksellä Y on tällä hetkellä 2 miljoonaa osaketta, ja sen osakkeilla käydään kauppaa €5,80 kappalehintaan.
a) The value of the firm is not affected by the rights issue.
b) The value of the firm decreases by €520 000.
c) The value of the firm increases by €520 000.
d) The value of the firm increases by €1 800 000.
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