Question
Maliwan, Inc., is proposing a rights offering. Presently there are 240,000,000 shares outstanding at $8 each. There will be 60,000,000 new shares offered at $6
Maliwan, Inc., is proposing a rights offering. Presently there are 240,000,000 shares outstanding at $8 each. There will be 60,000,000 new shares offered at $6 each.
a) What is the new market value of the company?
b) How many rights are associated with one of the new shares?
c) What is the ex-rights price?
d) What is the value of a right?
e) Why might a company have a rights offering rather than a general cash offer?
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Financial Management Principles And Practices
Authors: Sudhindra Bhat
2nd Edition
8174465863, 978-8174465863
