Question: In 2 0 1 9 , Pandora, Inc., makes a rights issue at a subscription price of $ 4 a share. One new share can

In 2019, Pandora, Inc., makes a rights issue at a subscription price of $4 a share. One new share can be purchased for every four
shares held. Before the issue there were 8 million shares outstanding, and the share price was $5.5.
a. What is the total amount of new money raised? (Round your answer to 2 decimal places.)
b. What is the expected stock price after the rights are issued? (Round your answer to the nearest cent.)
Expected stock price per share
In 2019, Pandora, Inc., makes a rights issue at a subscription

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