A firm has 10000000 shares outstanding with a price per share of 21.60 (previous to right issue). It does a right issue where it offers 2000000 shares to existing shareholders at a price of 15.90. A right issue is an?
________. Increase in the number of shares outstanding
2) Decrease in the price per share
3) Increase in the price per share
4) Decrease in the number of shares outstanding