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Associated Breweries is planning to market alcohol-free beer. To finance the venture, it proposes to make a rights issue at $16 of one new share
Associated Breweries is planning to market alcohol-free beer. To finance the venture, it proposes to make a rights issue at $16 of one new share for each eight shares held. (The company currently has outstanding 80,000 shares priced at $25 a share.) Assuming that the new money is invested to earn a fair return, give values for the following:
(For requirement e, do not round intermediate calculations. Round your answers to 2 decimal places.)
Please show calculations. Thanks.
a. Number of new shares b. Amount of new investment c. Total value of company after issue d. Total number of shares after issue e. Stock price after issueStep by Step Solution
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