Question
Funding required = 40 million Current market price Po = 2 Discount d= 20% S Ps = 2 (1- 0.2)= 1.60 Px = 1.92 Outstanding
Funding required = 40 million Current market price
Po = 2 Discount
d= 20% S
Ps = 2 (1- 0.2)= 1.60
Px = 1.92
Outstanding Shares N= 100 million
Explain the impact on the value of the right if the issue is undertaken on the specified terms and the share (cum-rights) price falls to 1.8 shortly after the shareholders are invited to subscribe to the new issue.
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Based on the given information lets analyze the impact on the value of the right if the issue is und...
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
