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Leah, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $61 each. There will be 25,000 new shares offered at $49
| Leah, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $61 each. There will be 25,000 new shares offered at $49 each. |
| a. | What is the new market value of the company? (Do not round intermediate calculations.) |
| b. | How many rights are associated with one of the new shares? (Do not round intermediate calculations.) |
| c. | What is the ex-rights price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| d. | What is the value of a right? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Accounting Information Systems
Authors: Vernon Richardson, Chengyee Chang, Rod Smith
2nd edition
978-1260153156
