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Question 1: EV Corporation is planning on building a new production (manufacturing and assembly) plant for the next generation of their clean automobile line. The

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Question 1: EV Corporation is planning on building a new production (manufacturing and assembly) plant for the next generation of their clean automobile line. The company is currently an all-equity company with 20,000,000 shares outstanding - each share is priced at $25 dollars. They are considering a rights offering (where each currently outstanding share would receive 1 right) and it would take 4 rights plus $21 dollars to buy a new share. a) What is the current (before the rights offering) total market value of the company? b) How many new shares would be issued (if all of the rights were exercised)? c) How much money would be raised through the rights offering (assume all rights are exercised)? d) What would be the new market value (after the rights had been exercised) of the company? e) What would the market price of a share of stock be after the rights were exercised

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