Question
In 2012, the Pandora Box Company made a rights issue at 9 a share of one new share for every four shares held. Before the
In 2012, the Pandora Box Company made a rights issue at 9 a share of one new share for every four shares held. Before the issue there were 9.4 million shares outstanding and the share price was 10. a. What was the total amount of new money raised? (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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. What was the prospective stock price after the issue? (Do not round intermediate calculations. 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? (Do not round intermediate calculations. Enter your answer in millions of euros rounded to 1 decimal place.)
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