Question
Again, Inc., is proposing a rights offering. Presently, there are 600,000 shares outstanding at $63 each. There will be 150,000 new shares offered at $55
| Again, Inc., is proposing a rights offering. Presently, there are 600,000 shares outstanding at $63 each. There will be 150,000 new shares offered at $55 each. |
| a. | What is the new market value of the company?(Do not round intermediate calculations.) |
| New market value | $46050000 |
| b. | How many rights are associated with one of the new shares?(Do not round intermediate calculations.) |
| Number of rights needed | 4 rights |
| c. | What is the ex-rights price?(Do not round intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).) |
| Ex-rights price | $ |
| d. | What is the value of a right?(Do not round intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).) |
| Value of a right | $ |
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Advanced Accounting
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
11th edition
538480289, 978-0538480284
