Prospective stock price after the issue


Lumia mobile plans a rights issue at $30 a share of one new share for every two shares held . Before the issue there were 10 million shares outstanding and the share price was $50. Unfortunately , investors did not like the decision and the price of Lumia ‘s shares went down by 10% . What was the prospective stock price after the issue? What was the value of one right to buy new shares?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Prospective stock price after the issue
Reference No:- TGS041038

Expected delivery within 24 Hours