Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kiser Mfg . is considering a rights offer. The company has determined that the ex - rights price will be $ 7 3 . The

Kiser Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $73. The current price is $85 per share, and there are 60 million shares outstanding. The rights offer would raise a total of $80 million. What is the subscription price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
The last expert said the answer was $77.70 and this was incorrect on the homework.
The next expert said 10.67. This was also incorrect.
Not sure where the math went wrong!. Help please!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Shape Up Your Finances

Authors: Ian Birt

2nd Edition

1925716422, 978-1925716429

More Books

Students also viewed these Finance questions

Question

What are some career options in the hotel industry?

Answered: 1 week ago