Estimating new market value of the company


Again Inc is proposing a rights offering. Presently, there are 450,000 shares outstanding at $90 each. There will be 80,000 new shares offered at $84 each.

a) What is the new market value of the company?

b) How many rights are assosicated with one of the new shares?

c) What is the ex-rights price?

d) What is the value of a right?

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Finance Basics: Estimating new market value of the company
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