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Associated Breweries is planning to market unleaded beer. To finance the venture, it proposes to make a rights issue with a subscription price of $10.

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Associated Breweries is planning to market unleaded beer. To finance the venture, it proposes to make a rights issue with a subscription price of $10. One new share can be purchased for every three shares held. The company currently has outstanding 240,000 shares priced at $30 a share. Assuming that the new money is invested to earn a fair return, give values for the following: a. Number of new shares Number of new shares b. Amount of new investment. New investment $ c. Total value of company after issue. Value of company $ d. Total number of shares after issue. Total number of shares e. Share price after the issue. Share price after issue $

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