Hyde, Inc., is proposing a rights offering. Presently, there are 585,000 shares outstanding at $87 each. There

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Hyde, Inc., is proposing a rights offering. Presently, there are 585,000 shares outstanding at $87 each. There will be 95,000 new shares offered at $78 each. 

a. What is the new market value of the company? 

b. How many rights are associated with one of the new shares? 

c. What is the ex-rights price? 

d. What is the value of a right? 

e. Why might a company have a rights offering rather than a general cash offer?

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Related Book For  book-img-for-question

Corporate Finance

ISBN: 978-1259918940

12th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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