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Associated Breweries is planning to market alcohol-free beer. To finance the venture, it proposes to make a rights issue at $15 of one new share

Associated Breweries is planning to market alcohol-free beer. To finance the venture, it proposes to make a rights issue at $15 of one new share for each seven shares held. (The company currently has outstanding 70,000 shares priced at $41 a share.) Assuming that the new money is invested to earn a fair return, give values for the following: 1. Number of new shares? 2. Amount of new investment? 3. Total value of company after issue? 4. Total number of shares after issue

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