Question
Computer Graphics has announced a rights offering for its shareholders. Carol Stevens owns 3,200 shares of Computer Graphics stock. Five rights plus $72 cash are
Computer Graphics has announced a rights offering for its shareholders. Carol Stevens owns 3,200 shares of Computer Graphics stock. Five rights plus $72 cash are needed to buy one of the new shares. The stock is currently selling for $96 rights-on.
| (a) | What is the value of a right? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Value per right | $ |
| (b-1) | How many of the new shares could Carol buy if she exercised all her rights? |
| Number of shares |
| (b-2) | How much cash would this require? (Omit the "$" sign in your response.) |
| Cash required | $ |
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The Oxford Handbook Of Entrepreneurial Finance
Authors: Douglas Cumming
1st Edition
0195391241, 978-0195391244
