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19 Explain why you recommend this discounted price rather than offering the shares at the current market price. Kiwi Airlines is looking to expand its
19 Explain why you recommend this discounted price rather than offering the
shares at the current market price.
Kiwi Airlines is looking to expand its business post-pandemic and is
contemplating a renounceable rights issue to raise funds to accomplish this. Kiwi
Airlines currently has 75 million shares outstanding with a market value of $5.00
each. Kiwi Airlines needs to raise $100 million and has contracted you to design
a rights issue to accomplish this.
You recommend that the offer price for the new shares is $4.00 per share.
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