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please solve this and check my answers Mr. and Mrs. Anderson own four shares of Magic Tricks Corporation's common stock. The market value of the
please solve this and check my answers
Mr. and Mrs. Anderson own four shares of Magic Tricks Corporation's common stock. The market value of the stock is $74. The Andersons also have $54 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $54 for each four shares currently owned (based on four rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right? Value per right b. What is the value of the Andersons' portfolio before the rights offering? (Portfolio in this question represents stock plus cash.) Portfolio value 350 0-1. Compute the diluted value (ex-rights) per share. Diuted on c-2. If the Andersons participate in the nights offering what will be the value of their portfolio, based on the diluted value (ex.rights) of the stock Portokal 350 c-2. If the Andersons participate in the rights offering, what will be the value of their portfolio, based on the diluted value (ex-rights) of the stock? Portfolio value 350 d. If they sell their two rights but keep their stock at its diluted value and hold on to their cash what will be the value of their portfolio? Portfolio value 280 Step by Step Solution
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