Question: Chapter 15 - Dropbox 3.4 Problem 1: Rights Offerings Hickock, Inc., is proposing a rights offering. Presently there are 350,000 shares outstanding of the company's

Chapter 15 - Dropbox 3.4 Problem 1: Rights Offerings Hickock, Inc., is proposing a rights offering. Presently there are 350,000 shares outstanding of the company's stock at $64 per share. There will be 50,000 new shares offered at $58 each. a) What is the new market value of the company? b) How many rights are associated with one of the new shares? c) What is the ex-rights price? d) What is the value of a right? e) Why might a company have a rights offering rather than a general cash offer? Output Area: a. New market value b. Number of rights needed c. P(x) d. Value of a right \begin{tabular}{|l|} \hline$3 \#DIV/0! \\ \hline \#DIV/0! \\ \hline \#DIV/0! \\ \hline \end{tabular} e

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