Question
1. The market o price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding. What is the market
1. The market o price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding. What is the market cap for PQR?
2. The market o price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding. PQR is considering a preemptive rights offering. Each current shareholder will get one right for every two shares owned. With each right and a $40 payment a new share can be purchased. Assume all the rights are exercised. What will be the number of shares outstanding for PQR after the exercise of the preemptive rights?
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
