Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer urgently thanks INTERNATIONAL INSURANCE AG plans to raise the equity with a quota of 7 old shares buy 3 new shares (7/3). Suppose
please answer urgently
INTERNATIONAL INSURANCE AG plans to raise the equity with a quota of 7 old shares buy 3 new shares (7/3). Suppose a shareholder owns 7 shares just before the rights offering. a) When the share price is listed at 120 before the offering, what is the shareholder's total worth? b) The new shares offer price is 90. Assume one share equals one right, what is the shareholder's new total worth, if he/she participates in full on the equity raise 7/3, assuming he/she has 7 old shares? What is the average share price after the rights offering? d) What is the value of one right? e) Assume a shareholder has 21 old shares, what does he/she pay, when participating in full on the equity raise? What is the average share price then? f) A new shareholder wants to buy 18 new shares at the subscription price during the rights trading period. What is his/her full payment? What is the average share price then thanks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started