Rights Offerings Again, Inc., is proposing a rights offering. Presently, there are 550,000 shares outstanding at $87

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Rights Offerings Again, Inc., is proposing a rights offering. Presently, there are 550,000 shares outstanding at $87 each. There will be 85,000 new shares offered at

$81 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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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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Question Posted: Jul 12, 2024 10:00 AM

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Rights Offerings Again, Inc., is proposing a rights offering. Presently, there are 550,000 shares outstanding at $87

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Corporate Finance With Connect Access Card

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