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EAA corporation currently has 3 million shares outstanding. the stock sells for $40 per share. to raise $20 million for a new project, the firm
EAA corporation currently has 3 million shares outstanding. the stock sells for $40 per share. to raise $20 million for a new project, the firm is considering a rights offering at $25 per share.
a. what is the total number of shares assuming all shareholders exercised their right
b. the value of EAA corporation at the end of the right issue
c. what is the ex-right price
d. what is the value of a right in EAA corporation
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