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Question 1 (10 Marks Total) (A) (5 Marks) Yoma Inc. is attempting to raise $5,000,000 in new equity with a rights offering. The subscription price

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Question 1 (10 Marks Total) (A) (5 Marks) Yoma Inc. is attempting to raise $5,000,000 in new equity with a rights offering. The subscription price for the 125,00 new shares will be $40 per share. The stock currently sells for $50 per share and there are 250,000 shares outstanding. What will the price per share be if all rights are exercised? (B)(5 Marks) The Holyoke Corporation has 120,000 shares outstanding with a current market price of $8.10 per share. The company needs to raise an additional $36,000 to finance new expenditures, and has decided on a rights issue. The issue will allow current stockholders to purchase one additional share for 20 rights at a subscription price of S6 per share. If the Ex-Rights price were set at $7.90, would you as a potential new stockholder choose to buy shares ex-rights or buy shares at the old price and exercise your rights

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