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Please answer all parts TUV Guy Inc. is proposing a rights offering. There are currently 240,000 shares outstanding at $80 each. There will be 60,000
Please answer all parts
TUV Guy Inc. is proposing a rights offering. There are currently 240,000 shares outstanding at $80 each. There will be 60,000 new shares offered at $60 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 value of a right?
d) What is the ex-rights price per share?
e) Why might a company have a rights offering rather than a general cash offer?
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