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Suppose SPORTStat a statistical sports analysis company wants to raise $1 billion. The current stock price of its current 25,000,000 shares is $100 a share.

  1. Suppose SPORTStat a statistical sports analysis company wants to raise $1 billion. The current stock price of its current 25,000,000 shares is $100 a share. The subscription price of its rights offering is $80. For this case let%u2019s ignore any issuing costs that may occur. How many shares must be issued?
  2. Suppose SPORTStat a statistical sports analysis company wants to raise $1 billion. The current stock price of its current 25,000,000 shares is $100 a share. The subscription price of its rights offering is $80. For this case let%u2019s ignore any issuing costs that may occur. How many rights will it take to purchase one share?
  3. Suppose SPORTStat a statistical sports analysis company wants to raise $1 billion. The current stock price of its current 25,000,000 shares is $100 a share. The subscription price of its rights offering is $80. For this case let%u2019s ignore any issuing costs that may occur. What is the value of one right? (Round to the nearest cent)
  4. You currently own 8 percent of the 3.5 million outstanding shares of Webster Mills. The company has just announced a rights offering with a subscription price of $28. One right will be issued for each share of outstanding stock. This offering will provided $9 million of new financing for the firm, ignoring all issue costs. Assume that all rights are exercised. What will be your new ownership position if you opted to sell your rights rather than exercise them personally? (Round to the 2nd decimal place)
  5. Flagler, Inc. needs to raise $30 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $40 per share and the company's underwriters charge a 10 percent spread. How many shares need to be sold? (Round up to the nearest whole share)
  6. Atlas Corp. wants to raise $4 million via a rights offering. The company currently has 450,000 shares of common stock outstanding that sell for $40 per share. Its underwriter has set a subscription price of $24 per share and will charge the company a 7 percent spread. Assume that you currently own 7,200 shares of stock in the company and decide not to participate in the rights offering. How many rights will it take to purchase one share? (Round to the 2nd decimal place)
  7. Atlas Corp. wants to raise $4 million via a rights offering. The company currently has 450,000 shares of common stock outstanding that sell for $40 per share. Its underwriter has set a subscription price of $24 per share and will charge the company a 7 percent spread. Assume that you currently own 7,200 shares of stock in the company and decide not to participate in the rights offering. How much can you get for selling all of your rights? (Round to the nearest cent)

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