Warminster Toys plc has a total issued share capital of £ XXXXXXXXXXin 50p shares. The company decides to make a rights issue of 1 for 5 at a price of £5.42 per share. To take up the rights the holder...

Warminster Toys plc has a total issued share capital of £3 000 000 in 50p shares. The company decides to make a rights issue of 1 for 5 at a price of £5.42 per share. To take up the rights the holder of 50 000 shares will have to pay:

a) £27 100

b) £135 500

c) £54 200

d) £271 000.