Question
Sheary, Inc., is proposing a rights offering. Presently, there are 200,000 shares outstanding at $60 each. There will be 40,000 new shares offered at $50
Sheary, Inc., is proposing a rights offering. Presently, there are 200,000 shares outstanding at $60 each. There will be 40,000 new shares offered at $50 each.
a. What is the new market value of the company? (Do not round intermediate calculations.) New market value $ b. How many rights are associated with one of the new shares? (Do not round intermediate calculations.) Number of rights needed rights c. What is the ex-rights price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Ex-rights price $ d. What is the value of a right? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of a right $
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