Question: Pls use the new data to solve A-D enzie Corporation currently has issue. Every existing shareholder will be sent one right per share of stock
enzie Corporation currently has issue. Every existing shareholder will be sent one right per share of stock that he or she owns. The company plans to r 8 million shares of stock outstanding at a price of $42 per share. The company would like to raise money and has announced a rights $42 per share. the rights issue is successful, how much money will it raise? b. What will the share price be after the rights issue? (Assume perfect capital markets) Suppose instead that the firm changes the plan so that each right gives the holder the right to purchase one share at $8 per share c. How much money will the new plan raise? d. What will the share price be after the rights issue? e. Which plan is better for the firm's shareholders? Which is more likely to raise the full amount of capital? a. Assuming the rights issue is successful, how much money will t raise? The company will be able to raise $ 67.20 milion. (Round to two decimal places.) b. What will the share price be after the rights issue? (Assume perfect capital markets.) The share price after the rights issue is $ 42.00 (Round to the nearest cent.) Suppose instead that the firm changes the plan so that each right gives the holder the right to purchase one share at $8 per share. c. How much money will the new plan raise? The amount that the new plan will raise is $ 64.00 million. (Round to two decimal places.) d. What will the share price be after the rights issue? The share price after the rights issue is s 25.00. (Round to the nearest cent.)
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