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Corp. Finance Inc. is proposing a rights offering. Presently there are 560,000 shares outstanding at RM20 each. There will 40,000 new shares offered at RM15
- Corp. Finance Inc. is proposing a rights offering. Presently there are 560,000 shares outstanding at RM20 each. There will 40,000 new shares offered at RM15 each. Calculate the following:
- New market value of the company.
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- Numbers of rights that associated with one new shares.
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- The ex-rights price.
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- The value of a right.
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- Total flotation cost. Given the flotation cost is 7 percent.
- Discuss FOUR (4) problems that may be met in using the CAPM in investment appraisal.
- New market value of the company.
- Numbers of rights that associated with one new shares.
- The ex-rights price.
- The value of a right.
- Total flotation cost. Given the flotation cost is 7 percent.
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