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Q2 (a) Konsonma & Co currently has 3 million shares outstanding. The stocks sell for 4000 cedis per share. To raise 2000 million cedis for
Q2 (a) Konsonma & Co currently has 3 million shares outstanding. The stocks sell for 4000 cedis per share. To raise 2000 million cedis for a new site, they are considering a rights offering at 2500 cedis per share. i) How many new shares will they sell? (1 marks) ii) What is the value of the firm after the (1 mark) What is the ex-rights price? (1 mark) iv) What is the value of a right? (1 marks) v) If you owe 1,000 shares of this company and are willing to all exercise your rights fully how many new shares will you buy? (2 marks) vi) What is your total investment (old and new shares) in Konsonma? (2 marks) ne fight issue? Toin
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