q1

Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of equity they own. The new shares in this offering are priced at 21 plus 3 rights. The current market value of the equity is 75 million with 3 milion shares outstanding. What is the value of one right? Show your steps. can you upload the excel file

q2

Hanover Tech is currently an all equity firm that has 320,000 shares outstanding with a market price of 24 a share. The current cost of equity is 15.4 per cent and the tax rate is 36 per cent. The firm is considering adding 1.2 million of debt with a coupon rate of 6 per cent to its capital structure. The debt will be sold at par value. What is the levered value of the equity? Show your steps.can u upload the excel file