Question: QUESTION 4 (25 MARKS) (a) Corp. Finance Inc. is proposing a rights offering. Presently there are 560,000 shares outstanding at RM20 each. There will 40,000

QUESTION 4 (25 MARKS) (a) Corp. Finance Inc. is proposing a

QUESTION 4 (25 MARKS) (a) Corp. Finance Inc. is proposing a rights offering. Presently there are 560,000 shares outstanding at RM20 each. There will 40,000 new shares offered at RM15 each. Calculate the following: (1) New market value of the company. (3 marks) (ii) Numbers of rights that associated with one new shares. (2 marks) (ii) The ex-rights price. (2 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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