Red Shoe Co. has concluded that additional equity financing will be needed to expand operations and that
Fantastic news! We've Found the answer you've been seeking!
Question:
Red Shoe Co. has concluded that additional equity financing will be needed to expand operations and that the needed funds will be best obtained through a rights offering. It has correctly determined that as a result of the rights offering, the share price will fall from $54 to $50.60 ($54 is the rights-on price; $50.60 is the ex-rights price, also known as the when-issued price). The company is seeking $18 million in additional funds with a per-share subscription price equal to $22. |
How many shares are there currently, before the offering? |
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date: