New market value of the company, Finance Basics

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New market value of the company

Rights Offerings [LO4] Big Time, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $81 each. There will be 60,000 new shares offered at $70 each.

What is the new market value of the company?

How many rights are associated with one of the new shares?

What is the ex-rights price?

What is the value of a right?

Why might a company have a rights offering rather than a general cash offer?

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Finance Basics: New market value of the company

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Finance Basics: New market value of the company

Reference No:- TGS046427

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Company net income for year

Q : Balance the financial statements with bank statements

Q : Total expected dollar sales for next period

Q : Main risk factors allowed for wacc to find required return

Q : New market value of the company

Q : What will be the free cash flow next/this year

Q : Making a contribution margin income statement

Q : Evaluate the contract''s bonus provision

Q : Project payback-project financially acceptable

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: New market value of the company

Reference No:- TGS046427

Recent Questions Asked Finance Basics

Q : Company net income for year

Q : Balance the financial statements with bank statements

Q : Total expected dollar sales for next period

Q : Main risk factors allowed for wacc to find required return

Q : New market value of the company

Q : What will be the free cash flow next/this year

Q : Making a contribution margin income statement

Q : Evaluate the contract''s bonus provision

Q : Project payback-project financially acceptable

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