Question
(a) XYZ is a public biotech company. The company currently has 12 million shares that are traded for $10 each. The company would like to
(a) XYZ is a public biotech company. The company currently has 12 million shares that are traded for $10 each. The company would like to raise an additional $20m in a rights issue to develop a new drug. If the subscription price is $5 calculate the following
1. The offer pro-rata entitlement (1:N)
2. The theoretical ex-right price 3. The value of the right
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
