Question
Cye, Inc., has 105,000 shares of stock outstanding. Each share is worth $72, so the companys market value of equity is $7,560,000. Suppose the firm
Cye, Inc., has 105,000 shares of stock outstanding. Each share is worth $72, so the companys market value of equity is $7,560,000. Suppose the firm issues 20,000 new shares at the following prices: $72, $69, and $64. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0". Round your answers to 2 decimal places, e.g., 32.16.) Price Ex-Rights Effect Amount a. $72 $ $ per share b. $69 $ $ per share c. $64 $ $ per share
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