# Bowman, Inc., is proposing a rights offering. Presently there are 400,000 shares outstanding at $73 each. There will be 50,000 new shares offered at $65 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

Bowman, Inc., is proposing a rights offering. Presently there are 400,000 shares outstanding at $73 each. There will be 50,000 new shares offered at $65 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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**Related Book For**

## Fundamentals of corporate finance

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

ISBN: 978-0078034633