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In excel In 2012, the Pandora Box Company made a rights issue at $12 a share of one new share for every ten shares held.

In excel

In 2012, the Pandora Box Company made a rights issue at $12 a share of one new share for every ten shares held. Before the issue there were 13.4 million shares outstanding, and the share price was $15.

A. What was the total amount of new money raised?

B. What was the prospective stock price after the issue?

C. 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?

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