Question: History Bookmarks Window Help Mon 3:31 PM Chapter 17 assignments Mr. and Mrs. Anderson own five shares of Magic Tricks Corporation's common stock. The market
History Bookmarks Window Help Mon 3:31 PM Chapter 17 assignments Mr. and Mrs. Anderson own five shares of Magic Tricks Corporation's common stock. The market value of the stock is $66 in cash. They have just received word of a rights offiering. One new share of stock can be purchased at $68 for each five shares (based on five rights). (Do not round intermediate calculations and round $78. The Andersons also have currently owned your answers to the nearest whole dollar) a. What is the value of a right? per right ?. What is the value of the Andersons' portfolio before the rights offering? (Orfoio in this queston represents sock plus cash, Portfolio value c-1. Compute the diluted value (ex-rights) per share. Diluted vaue o-2. If the Andersons participate in the rights offering, what will be the value of their portiolio, based on the dilusted value (ex-ights) of the stock? Poutblo value d If they sell their two rights but keep their stock at its diluted value and hold on to their cash, what wll be the value of their portfolio? value
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