Question
nbc want to raise $5 million new equity via a rights issue with a subscription price of $40/share. Current shares sell (rights on) for $60
nbc want to raise $5 million new equity via a rights issue with a subscription price of $40/share. Current shares sell (rights on) for $60 each. Calculate the minimum current value of a right and the ex-rights share price assuming there are 2 million shares outstanding before the rights issue. Check your ex rights share price using another formula.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
