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Hi, can you help me solve this question? I will rate if the answer is correct. Thanks Cye, Inc., has 175,000 shares of stock outstanding.
Hi, can you help me solve this question? I will rate if the answer is correct. Thanks
Cye, Inc., has 175,000 shares of stock outstanding. Each share is worth $73, so the company's market value of equity is $12,775,000. Suppose the firm issues 32,000 new shares at the following prices: $73, $67, 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.) a. $73 b. $67 Price Ex-Rights Effect 73 No change $ 72.07|Price drops by 71.14 Price drops by A A [ A A A Amount 0 per share 0.93 per share C. $61 per share Cye, Inc., has 175,000 shares of stock outstanding. Each share is worth $73, so the company's market value of equity is $12,775,000. Suppose the firm issues 32,000 new shares at the following prices: $73, $67, 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.) a. $73 b. $67 Price Ex-Rights Effect 73 No change $ 72.07|Price drops by 71.14 Price drops by A A [ A A A Amount 0 per share 0.93 per share C. $61 per shareStep by Step Solution
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