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In 2012, the Pandora Box Company made a rights issue at 13 a share of one new share for every two shares held. Before the
In 2012, the Pandora Box Company made a rights issue at 13 a share of one new share for every two shares held. Before the Issue there were 10.8 million shares outstanding and the share price was 14. a. What was the total amount of new money ralsed? (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 Intermedlate calculations. Round your answer to 2 decimal places.) c. What was the prospective stock price after the Issue? (Do not round Intermedlate 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 Intermedlate calculatlons. Enter your answer In millions of euros rounded to 1 decimal place.) Now suppose that the company had decided to Issue the new stock at 12 instead of 13. e. How many new shares would the firm have needed to sell to ralse the same sum cf money? (Do not round Intermedlate calculatlons. Round your answer to the nearest whole number.) f. What would be the new value of the opportunity glven to shareholders to buy one new share for less than the market price? (Do not round Intermedlate calculatlons. Round your answer to 2 decimal places.) g. What would be the prospectlve stock price after the Issue? (Do not round Intermedlate calculations. Round your answer to 2 declmal places.) h. Now how far could the total value of the company fall before shareholders would be unwilling to take up their rights? (Do not round Intermedlate calculatlons. Enter your answer In millions of euros rounded to 1 decimal place.)
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