Question: Answer the questions based on the table below Before rights offering After rights offering Value of equity $200,000,000 ( ) # of shares 10,000,000 (
Answer the questions based on the table below
|
| Before rights offering | After rights offering |
| Value of equity | $200,000,000 | ( ) |
| # of shares | 10,000,000 | ( ) |
| Stock price | $20 | ( ) |
| New equity capital | $40,000,000 |
|
| Subscription price | $10 |
|
| # of new shares | ( ) |
|
| # of rights | ( ) |
|
| Conversion ratio for a right to a new share | ( ) |
|
| Value of a right | ( ) |
|
Figure out the number of new shares issued given the subscription price.
Figure out the conversion ratio for rights to a new share.
Figure out the stock price after the rights offering.
Figure out the value of a right.
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