Question
A person has 5,000 of the 500,000 total stock shares of XYZ company. The company has just announced a rights offering for which 55,000 new
A person has 5,000 of the 500,000 total stock shares of XYZ company. The company has just announced a rights offering for which 55,000 new shares are being offered at a subscription price of $12 per share. The current stock price is $16 per share. Assume this person sells all her rights and that all rights are exercised. What percentage of the firm will she own after the rights offering?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
