Question
Berczy Inc. is proposing a rights offering. Currently, there are 400,000 shares outstanding at $44 each. There will be 100,000 new shares offered at $35
Berczy Inc. is proposing a rights offering. Currently, there are 400,000 shares outstanding at $44 each. There will be 100,000 new shares offered at $35 each.
a. What is the net market value of the company? (Omit $ sign in your response.)
b. How many rights are associated with one of the new shares?
c. What is the ex-rights price? (Round the final answer to 2 decimal places. Omit $ sign in your response.)
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.)
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
10th edition
978-1260013955, 78034639, 978-0078034633
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