Question
Cye, Inc., has 120000 shares of stock outstanding. Each share is worth $69, so the companys market value of equity is $8,280,000. Suppose the firm
| Cye, Inc., has 120000 shares of stock outstanding. Each share is worth $69, so the companys market value of equity is $8,280,000. Suppose the firm issues 21,000 new shares at the following prices: $69, $66, and $61. |
| 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. | $69 | $ | (Click to select)Price raises byNo changePrice drops by | $ | per share |
| b. | $66 | $ | (Click to select)Price raises byNo changePrice drops by | $ | per share |
| c. | $61 | $ | (Click to select)No changePrice raises byPrice drops by | $ | per share |
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ISE Analysis For Financial Management
Authors: Robert C. Higgins Professor, Jennifer Koski
13th International Edition
1265042632, 9781265042639
