9. Ehsan Corporation has 800 million shares outstanding trading at $40 per share. The company wants...

 

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9. Ehsan Corporation has 800 million shares outstanding trading at $40 per share. The company wants to raise $2 billion and are considering using rights offering. A) If the offering requires 10 rights to purchase one share at $25 per share, how much will the company raise? What is the value per share after the rights issue? B) If the offering requires 8 rights to purchase one share at $20 per share, how much will the raise? What is the value per share after the rights issue? 9. Ehsan Corporation has 800 million shares outstanding trading at $40 per share. The company wants to raise $2 billion and are considering using rights offering. A) If the offering requires 10 rights to purchase one share at $25 per share, how much will the company raise? What is the value per share after the rights issue? B) If the offering requires 8 rights to purchase one share at $20 per share, how much will the raise? What is the value per share after the rights issue?

Answer rating: 100% (QA)

A 1 Total amount to be raised 2 billion 2 Number of shares to be issued Total amount to be raised Pr... View the full answer