Hickock, Inc., is proposing a rights offering. Presently there are 350,000 shares outstanding at $64 each. There

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Hickock, Inc., is proposing a rights offering. Presently there are 350,000 shares outstanding at $64 each. There will be 50,000 new shares offered at $58 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 answer-question

Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Nov 21, 2016 08:25 AM

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Hickock, Inc., is proposing a rights offering. Presently there are 350,000 shares outstanding at $64 each. There

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Given Data Input Area Shares outstanding 350000 Price 6400 New shar...View the full answer

Fundamentals of Corporate Finance

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