Again Inc. is proposing a rights offering. There are 450,000 shares outstanding at $90 each. There will

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Again Inc. is proposing a rights offering. There are 450,000 shares outstanding at $90 each. There will be 80,000 new shares offered at $84 each.

a. What is the new market value of the company?

b. How many rights are associated with one of the new shares?

c. What is the ex-rights price?

d. What is the value of a right?

e. Why might a company have a rights offering rather than a general cash offer?

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Corporate Finance

ISBN: 978-0071339575

7th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro

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Question Posted: Jun 17, 2015 04:49 AM

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Again Inc. is proposing a rights offering. There are 450,000 shares outstanding at $90 each. There will

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a The new market value will be the current shares outstanding times the stock p...View the full answer

Corporate Finance

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