A companys stock currently sells for $79 per share. Last week the firm issued rights to raise
Fantastic news! We've Found the answer you've been seeking!
Question:
A company’s stock currently sells for $79 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $24 and 4 rights. |
a. | What is the ex-rights stock price? Recall that the ex-rigths price is the new share price after the rights have been isued. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
b. | What is the price of one right? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date: