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Leah, Inc., is proposing a rights offering. Presently there are 600,000 shares outstanding at $62 each. There will be 60,000 new shares offered at
Leah, Inc., is proposing a rights offering. Presently there are 600,000 shares outstanding at $62 each. There will be 60,000 new shares offered at $52 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.) a. b. C. d. Answer is complete but not entirely correct. New market value Number of rights needed Ex-rights price Value of a right S S S UN
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a Calculate the new market value of the company Current market value of existing shares 600000 share...Get Instant Access to Expert-Tailored Solutions
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