Question

3. a. Experienced Virgins Airline is proposing a rights offering. Presently, there are 400,000 shares outstanding...

3. a. Experienced Virgins Airline is proposing a rights offering. Presently, there are 400,000 shares outstanding at ₵75 each. There will be 70,000 new shares offered at ₵70 each. i. What is the new market value of the company? ii. How many rights are associated with one of the new shares? iii. What is the ex-rights price? iv. What is the value of a right?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hickock, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $56 each....
Hickock, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $56 each. There will be 100,000 new shares offered at $48 each. a. What is the new market value of the company? b. How many rights are associated with one of the new shares? c. What is the ex-rights price? d. What is the value of a right?
Happy Memories, Inc. is proposing a rights offering. Presently there are 300,000 shares outstanding at $86...
Happy Memories, Inc. is proposing a rights offering. Presently there are 300,000 shares outstanding at $86 each. There will be 50,000 new shares offered at $78 each. a. What is the new market value of the company? b. How many rights are associated with one of the new shares? c. What is the ex-rights price? (Round your answer to 2 decimal places.) d. What is the value of a right? (Round your answer to 2 decimal places.)
Sheary, Inc., is proposing a rights offering. Presently, there are 800,000 shares outstanding at $77 each....
Sheary, Inc., is proposing a rights offering. Presently, there are 800,000 shares outstanding at $77 each. There will be 160,000 new shares offered at $70 each. a. What is the new market value of the company? (Do not round intermediate calculations.) New market value $ b. How many rights are associated with one of the new shares? (Do not round intermediate calculations.) Number of rights needed rights c. What is the ex-rights price? (Do not round intermediate calculations and round...
Leah, Inc., is proposing a rights offering. Presently there are 200,000 shares outstanding at $66 each....
Leah, Inc., is proposing a rights offering. Presently there are 200,000 shares outstanding at $66 each. There will be 40,000 new shares offered at $50 each. a. What is the new market value of the company? (Do not round intermediate calculations.) b. How many rights are associated with one of the new shares? (Do not round intermediate calculations.) c. What is the ex-rights price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d....
Chanelle, Inc., is proposing a rights offering. Presently, there are 600,000 shares outstanding at $57 each....
Chanelle, Inc., is proposing a rights offering. Presently, there are 600,000 shares outstanding at $57 each. There will be 25,000 new shares offered at $47 each. a. What is the new market value of the company? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)   New market value $    b. How many rights are associated with one of the new shares? (Do not round intermediate calculations and round your answer to the nearest...
ABC Inc currently has 500,000 shares outstanding at $44 each. The company is proposing a rights...
ABC Inc currently has 500,000 shares outstanding at $44 each. The company is proposing a rights offering with subscription price set at $35. Shareholders will need to have four rights to exercise their right to buy each new share. I. What is the new market value of the company after the rights issue? II. What is the value of each right? What is the ex-rights price of shares? III. ABC managers want the ex-rights price to be $42.80. What should...
QUESTION 23 Brother Ltd is proposing a 1 for 5 pro-rata renounceable rights issue. Presently there...
QUESTION 23 Brother Ltd is proposing a 1 for 5 pro-rata renounceable rights issue. Presently there are 250,000 shares outstanding at $45 each. In accordance with the rights issue there will be 50,000 new shares offered at $40 each. (a) How many shares must an existing shareholder own to obtain a right to a new share? (b) What is the theoretical ex-rights share price of Brother Ltd? (c) What is the value of a right in Brother Ltd? (d) If...
FYI: THIS IS A NEW SET OF PROBLEM WITH A NEW SET OF DATA.. PLEASE DO...
FYI: THIS IS A NEW SET OF PROBLEM WITH A NEW SET OF DATA.. PLEASE DO NOT PROVIDE OLD ANSWERS Sheary, Inc., is proposing a rights offering. Presently, there are 800,000 shares outstanding at $58 each. There will be 80,000 new shares offered at $50 each. a. What is the new market value of the company? (Do not round intermediate calculations.) New market value           $ _______ b. How many rights are associated with one of the new shares? (Do...
Aaron services whose shares are presently trading on the Toronto stock exchange at a price of...
Aaron services whose shares are presently trading on the Toronto stock exchange at a price of $60 per share (rights-on) has just announced a right offering .under the terms of the offering each shareholder will receive one right for every share held. In exchange for four rights, holders may purchase one common share for $56.Assume that you have $18,000 to invest. How many rights can you purchase with the funds? How many shares could you purchase with the fund? If...
Lamar Inc. is attempting to raise $5,000,000 in new equity with a rights offering. The subscription...
Lamar Inc. is attempting to raise $5,000,000 in new equity with a rights offering. The subscription price will be $40 per share. The stock currently sells for $50 per share and there are 250,000 shares outstanding. a) How many rights are needed to buy a new share? (2 points) b) What will the ex-right price be if all rights are exercised? (2 points) c) What is the value of one right? (1 point)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT