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Green Corporation has 5 million shares outstanding at a price of $50. per share and plans to raise money with a rights issue. Green Corporation
Green Corporation has 5 million shares outstanding at a price of $50. per share and plans to raise money with a rights issue. Green Corporation has no debt. Every existing shareholder will receive one right per share of stock that they own. The company plans to require five rights to purchase one share at a price of $25 per share. a) How much money will the rights issue raise? b) What is the value of the firm before rights-issue. What is the value after the rights-issue? c) After the rights-issue, what is the total number of shares outstanding
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