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In 2 0 1 2 , the Pandora Box Company made a rights issue at 5 a share of one new share for every four

In 2012, the Pandora Box Company made a rights issue at 5 a share of one new share for every four shares held. Before the issue
there were 10 million shares outstanding and the share price was 6.
a. What was the total amount of new money raised?
Note: Enter your answer in whole euros not millions of euros.
b. The rights issue gave the shareholder the opportunity to buy one new share for less than the market price. What was the value
of this opportunity per share owned?
Note: Round your answer to 2 decimal places.
c. What was the prospective stock price after the issue?
Note: Round your answer to 2 decimal places.
d. How far could the total value of the company fall before shareholders would be unwilling to take up their rights?
Note: Enter your answer in millions of euros.
Now suppose that the company had decided to issue the new stock at 4 instead of 5.
e. How many new shares would the firm have needed to sell to raise the same sum of money?
Note: Enter your answer as a whole number rather than millions.
f. What would be the new value of the opportunity given to shareholders to buy one new share for less than the market price?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
g. What would be the prospective stock price after the issue?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
h. Now how far could the total value of the company fall before shareholders would be unwilling to take up their rights?
Note: Enter your answer in millions of euros.
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