Question
1.) Bowman, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $48 each. There will be 160,000 new shares offered at
| 1.) Bowman, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $48 each. There will be 160,000 new shares offered at $40 each. |
| a. | What is the new market value of the company? |
| New market value | $44800000 |
| b. | How many rights are associated with one of the new shares? |
| Number of rights needed______5__________ |
|
| c. | What is the ex-rights price? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Ex-rights price______________________ | $ |
| d. | What is the value of a right? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Value of a right_____________________ | $ |
I just need the answer to C and D
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
