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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.
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 180.000 shares priced at $50 a share. Assuming that the new money is invested to earn a fair return, give values for the following: Number of new shares. Amount of new investment. Total value of company after issue. Total number of shares after issue. Share price after the issue
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