Suppose you own 50,000 shares of common stock in a firm with 2.5 million total shares outstanding. the firm announces a plan to sell an additional 1 million shares through a rights offering. the market value of the stock is $ 35 before the rights offering and the new shares are being offered to existing shareholders at a $ 5 discount. a. if you exercise your preemptive rights, how many of the new shares can you purchase? b. what is the market value of the firm after the rights offering? c. what is your total investment in the firm after the rights offering? how is your investment split between original shares and new shares? d. if you decide not to exercise your preemptive rights rather sell your rights, what is your investment in the firm after the rights offering? how is this split between old shares and rights?
Answers: 1
Another question on Business
Business, 21.06.2019 12:30
Based on an annual disposable income of $40,000, calculate the average amount o money a person would save in japan; in the united states; in france.
Answers: 1
Business, 22.06.2019 04:10
You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?
Answers: 1
Business, 22.06.2019 18:30
Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?
Answers: 1
Business, 22.06.2019 22:20
Which of the following best explains why the demand for housing is more flexible than the supply? a. new housing developments are being constructed all the time. b. low interest rates for mortgages make buying a home very affordable. c. the increasing population always drives demand upwards. d. people can move more easily than producers can build new homes.
Answers: 1
You know the right answer?
Suppose you own 50,000 shares of common stock in a firm with 2.5 million total shares outstanding. t...
Questions
Mathematics, 19.07.2019 07:30
Physics, 19.07.2019 07:30
Mathematics, 19.07.2019 07:30
Mathematics, 19.07.2019 07:30
Mathematics, 19.07.2019 07:30
Mathematics, 19.07.2019 07:30
Mathematics, 19.07.2019 07:30
Mathematics, 19.07.2019 07:30
