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This is my 4th time asking this question & i keep getting wrong answers or the formula that was provided still dont help. I need
This is my 4th time asking this question & i keep getting wrong answers or the formula that was provided still dont help. I need help with C & D
Pandora Box Company Inc. makes a rights issue at a subscnption price of $4 a Share One new share can be purchased for every four shares held. Before the issue there were 8 million shares outstanding and the share price was $14 o. What is the total amount of new money raised? (Do not round Intermediate calculations. Enter your answer in millone) b. What is the expected stock price after the rights are issued? (Enter your answer founded to 4 decimal places) c. By what percentage would the total value of the company need to fall before shareholders would be unwilling to take up their not? (Do not round Intermediate calculations. Enter your answer as a positive percent rounded to 2 decimal places.) d. Suppose that you initially own 500 shares plus $500 in the bank if you take up your tissue, what will be your total wealth after the issue is completed? (Do not round Intermediate calculations. Enter your answer rounded to nearest whole dollar) e. Suppose that the company now decides to issue the new stock at $1 instead of $4 a share. How many new shares would it have needed to raise the same sum of money? (Enter your answer in millions rounded to 1 decimal place.) 1. What is the expected stock price under this new arrangement after the rights are issued? (Do not round intermediate calculations. Round your answer to 2 decimal places.) g. If you take up your nghits issue under this new arrangement, what will be the impact on your total wealth after the sus completed? h. Which arrangement makes you better off the first, the second, or neither? aces S S a million 12 0000 per share b. C. New money raised Stock price Fall in total value Total wealth New shares Stock price d. e. f. 80 million 7.50 per share Step by Step Solution
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