Hickock, Inc., is proposing a rights offering. Presently there are 400,000 shares outstanding at $44 each. There will be 100,000 new shares offered at $35 each. Please Show work for all sections.
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
c. What is the ex-rights price? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Ex-rights price $
d. What is the value of a right? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Value of a right $