Question
Company XYZ has 30 million shares of common stock outstanding. It wishes to issue another 1,500,000 shares. The current market price per share is $25
Company XYZ has 30 million shares of common stock outstanding. It wishes to issue another 1,500,000 shares. The current market price per share is $25 and the rights offering subscription price is $20 per share.
- How many rights will current stockholders receive?
- How many rights are needed to buy one additional share?
- What is the value of a right if the stock is trading: rights-on?
- What is the value of a right if the stock is trading: ex-rights?
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Finance Capital A Study In The Latest Phase Of Capitalist Development
Authors: Rudolph Hilferding
1st Edition
0415436648, 978-0415436649
