Question
In 2012, the Pandora Box Company made a rights issue at 7 a share of one new share for every five shares held. Before the
In 2012, the Pandora Box Company made a rights issue at 7 a share of one new share for every five shares held. Before the issue there were 9.2 million shares outstanding and the share price was 10.
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.)
million
f. What would be the new value of the opportunity given to shareholders to buy one new share for less than the market price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Introduction To Corporate Finance
Authors: William L. Megginson, M.D. Lucey Brian C., Scott J. Smart, Scott B. Smart, Bill Megginson
1st Edition
184480562X, 9781844805624
