Question: Hi tutor, can you show me step by step calculation for the below QUESTION 4 (25 MARKS) Corp. Finance Inc. is proposing a rights offering.

Hi tutor, can you show me step by step calculation for the below

QUESTION 4 (25 MARKS)

  1. Corp. Finance Inc. is proposing a rights offering. Presently there are 240,000 shares outstanding at RM80 each. There will 60,000 new shares offered at RM60 each. Calculate the following:

(i) New market value of the company. (2 marks)

(ii) Numbers of rights that associated with one new shares. (3 marks)

(iii) The ex-rights price. (3 marks)

(iv) The value of a right. (2 marks)

(v) Total flotation cost. Given the flotation cost is 7 percent. (4 marks)

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