Sheary, Inc., is proposing a rights offering. Presently, there are 375,000 shares outstanding at $60 each. There
Question:
Sheary, Inc., is proposing a rights offering. Presently, there are 375,000 shares outstanding at $60 each. There will be 65,000 new shares offered at $57 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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a The new market value will be the current shares outstanding times the stock price ...View the full answer
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Related Book For 
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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