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6. Numerical problem III (15p) A firm plans to make a rights offer of one new share for three old shares at an issue price

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6. Numerical problem III (15p) A firm plans to make a rights offer of one new share for three old shares at an issue price of 100 (N 1:3 - 100). The current market price before the rights offer is 150. (a) What is the price per share after the rights offer? (b) The firm plans to pay a dividend in the amount of 25 per share in the middle of the rights offer. What is the price per share after the rights offer, but before the payment of the dividend, if the new shares are excluded from the dividend? (c) As in the previous question, what is the price per share after the rights offer, but before the payment of the dividend, if the new shares are excluded from two fifths (40%) of the dividend? 6. Numerical problem III (15p) A firm plans to make a rights offer of one new share for three old shares at an issue price of 100 (N 1:3 - 100). The current market price before the rights offer is 150. (a) What is the price per share after the rights offer? (b) The firm plans to pay a dividend in the amount of 25 per share in the middle of the rights offer. What is the price per share after the rights offer, but before the payment of the dividend, if the new shares are excluded from the dividend? (c) As in the previous question, what is the price per share after the rights offer, but before the payment of the dividend, if the new shares are excluded from two fifths (40%) of the dividend

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