Question
Berczy Inc. is proposing a rights offering. Currently there are 400,000 shares outstanding at $54 each. There will be 25,000 new shares offered at $45
Berczy Inc. is proposing a rights offering. Currently there are 400,000 shares outstanding at $54 each. There will be 25,000 new shares offered at $45 each. a. What is the new market value of the company? (Omit $ sign in your response.) New market value $ b. How many rights are associated with one of the new shares? Number of rights needed c. What is the ex-rights price? (Round the final answer to 2 decimal places. Omit $ sign in your response.) Ex-rights price $ d. What is the value of a right? (Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Value of a right $ e. Not available in Connect.
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