Question
NNT Ltd has 2 million shares outstanding and the current share price is $12 per share. NNT Ltd announced to launch a 4 for 1
NNT Ltd has 2 million shares outstanding and the current share price is $12 per share. NNT Ltd announced to launch a 4 for 1 rights offering at an offer price of $5 per share. Assuming all shareholders will participate, the market value of NNT's total equity after the rights issue is closest to A. $24 million B. $10 million C. $30.5 million D. $64 million E. $26.5 million
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
