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Company A has 4 million shares on issue and wishes to raise $4 million by a 1- for-4 rights issue. (a) What is the
Company A has 4 million shares on issue and wishes to raise $4 million by a 1- for-4 rights issue. (a) What is the theoretical value of 1 right if the market price of 1 share (cum rights) is $5? (b) What is the theoretical share price (ex-rights)? (c) Does an investor gain through a rights issue?
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a To raise 4 million Company A needs to issue 1 million new shares at a price of 4 per share since 1 million shares x 4 per share 4 million Since the ...
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
