Their present capital position shows 500,000 shares authorized, 360,000 issued. The market price of the outstanding Thistlewaite

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Their present capital position shows 500,000 shares authorized, 360,000 issued.

The market price of the outstanding Thistlewaite shares is $76.

a. Explain the use of the pre-emptive right in this situation. What would be the value of a right?

b. What would be the value of a right if the commons tock rose to 82¼? If it fell to 71½?

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Quantitative Corporate Finance

ISBN: 9781402070198

1st Edition

Authors: John B. Guerard, Jr.; Eli Schwartz

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Question Posted: May 30, 2024 09:02 AM

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Their present capital position shows 500,000 shares authorized, 360,000 issued. The market price of the outstanding Thistlewaite

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Quantitative Corporate Finance

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