Question
Nemesis, Inc., has 180,000 shares of stock outstanding. Each share is worth $74, so the companys market value of equity is $13,320,000. Suppose the firm
Nemesis, Inc., has 180,000 shares of stock outstanding. Each share is worth $74, so the companys market value of equity is $13,320,000. Suppose the firm issues 34,000 new shares at the following prices: $74, $68, and $62. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share?
Effect options: No Change, Price drops by, Price raises by.
| Price Ex-Rights | Effect | Amount | |||
|---|---|---|---|---|---|
| a. | per share | ||||
| b. | per share | ||||
| c. | per share |
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The Complete Direct Investing Handbook
Authors: Kirby Rosplock
1st Edition
1119094712, 978-1119094715
