(3*2= 6 points) The Sigmund company is authorised to sell 30,000 shares of common stock. Currently...
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(3*2= 6 points) The Sigmund company is authorised to sell 30,000 shares of common stock. Currently 20,000 shares are outstanding. The company wants to raise Tk.10 million by selling the remaining authorised shares through rights offering at Tk.32 per share. The stock is currently priced at Tk.40 per share. a. b. C. id why? How many rights would Sigmund allow each stockholder to purchase each share of the new issue? What will be the expected value of each right? What will be the expected price of the stock ex-rights? 19 (3*2= 6 points) The Sigmund company is authorised to sell 30,000 shares of common stock. Currently 20,000 shares are outstanding. The company wants to raise Tk.10 million by selling the remaining authorised shares through rights offering at Tk.32 per share. The stock is currently priced at Tk.40 per share. a. b. C. id why? How many rights would Sigmund allow each stockholder to purchase each share of the new issue? What will be the expected value of each right? What will be the expected price of the stock ex-rights? 19
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Step 13 a Calculation of rights to purchase of each share of new issue The number of rights needed t... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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