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i have 15 min pls fast Company C's capital includes $5 million in bonds and 8 million common shares with a market price of $60
i have 15 min pls fast
Company C's capital includes $5 million in bonds and 8 million common shares with a market price of $60 per shares. The company has just announced o rights issue whereby an additional 2 million shares will be issued ot a subscription price of $53 per share. The company's net income this year is $30 million. Your sister, who owns shares in the company, does not have the funds required to purchose the new shares and is concerned about the a possble decline in the company's earnings per share and P/E ratio ofter the rights issue. Required: Calculate the expected changes to the company's earnings per share ond P/E ratio ofter the rights issue Step by Step Solution
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