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In 2010, Pandora, Inc., makes a rights issue at a subscription price of $4 a share. One new share can be purchased for every four
In 2010, Pandora, Inc., makes a rights issue at a subscription price of $4 a share. One new share can be purchased for every four shares held. Before the issue there were 12 million shares outstanding, and the share price was $6. |
a. | What is the total amount of new money raised? (Round your answer to 2 decimal places.) | |
Total amount of money raised $_____ million |
b. | What is the expected stock price after the rights are issued? (Round your answer to the nearest cent.) | |
Expected stock price per share$ _____ |
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