Question
XYZ owns 5,500 of the 350,000 shares of TC Inc. The company has just announced a rights offering whereby 40,000 shares are being offered at
XYZ owns 5,500 of the 350,000 shares of TC Inc. The company has just announced a rights offering whereby 40,000 shares are being offered at a subscription price of $12 a share. The current stock price is $16 a share. Assume she sells her rights and that all rights are exercised. What percentage of the firm will she own after the rights offering?
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
12th Edition
1439044473, 978-1439044476
