A company has 4 0 0 , 0 0 0 shares with a face value of 1

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Question:

A company has

400, 000

shares with a face value of

1.4

euro. It announces an equity issue at

1.5

euros per share, with a proportion of

1

new share for

2

old shares. If shares were trading, before the issuance at a price equal to

140 %

of their nominal value, what is the price per share after the issue?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Mar 16, 2024 05:45 AM

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A company has 4 0 0 , 0 0 0 shares with a face value of 1

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Expert Answer:

Heres how to calculate the price per share after the equity issue 1 Preissuance Information Total ex... View the full answer

Foundations of Financial Management

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