Question
Jen owns 15,000 shares of Teen Clothing. Currently, there are 650,000 shares of stock outstanding. The company has just announced a rights offering whereby 150,000
Jen owns 15,000 shares of Teen Clothing. Currently, there are 650,000 shares of stock outstanding. The company has just announced a rights offering whereby 150,000 shares are being offered for sale at a subscription price of $16 a share. The current stock price is $19 a share. Assume that Jen sells her rights and that all rights are exercised. What percentage of the firm will Jen own after the rights offering?
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Adventure Finance
Authors: Aunnie Patton Power
1st Edition
3030724271, 978-3030724276
