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You are evaluating the following two mutually exclusive projects: Calculate the cross-over rate for the two project (i.e., the cost of capital that makes the

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You are evaluating the following two mutually exclusive projects: Calculate the cross-over rate for the two project (i.e., the cost of capital that makes the NPVs of the two projects equal). Norfolk Inc. needs to raise $8 million to finance its asset growth. The firm makes a rights offering at $16 per share (subscription price). The firm has 20 million shares outstanding. share price is selling at $20 before the rights offer. How many new shares does the firm need to sell in the rights offering? How many rights are needed to purchase one new share? What is the new market share price after the rights issue? What is the value of each right

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