Question
Pandora, Inc., makes a rights issue at a subscription price of $7 a share. One new share can be purchased for every four shares held.
| Pandora, Inc., makes a rights issue at a subscription price of $7 a share. One new share can be purchased for every four shares held. Before the issue there were 12 million shares outstanding and the share price was $8. |
| a. | What is the total amount of new money raised? (Enter your answer in millions rounded to 1 decimal place.) |
| New money raised | $ million |
| b. | What is the expected stock price after the rights are issued? (Round your answer to 2 decimal places.) |
| New share price | $ |
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Finance For Housing An Introduction
Authors: Cathy Davis
1st Edition
1447306481, 978-1447306481
