Question

Crawford, Inc., has 135,000 shares of stock outstanding. Each share is worth $71, so the company's market value of equity is $9,585,000. Suppose the firm issues 15,000 new shares at the following prices: $71, $68, and $63. What will the effect be of each of these alternative offering prices on the existing price per share? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank; If there is no effect select "No change" from the dropdown and enter "O".) Price Ex Rights Effect a. b. c. $71 $68 $63 Amount per share per share per share

Answer 1

	Price Ex-right = (Price before right*Number of shares before right + Proceeds from right issue)/Number of shares after right
		Price Ex-rights	Effect	Amount
a.	71	71.000	Same	0.000	Per share
b.	68	70.700	Decrease	0.300	Per share
c.	63	70.200	Decrease	0.800	Per share

А в DE 1 Price Ex-1 2 Price Ex-rights Effect Amount 3 a. 71 =(9585000+15000*B3)/150000 Same =71-C3 Per share 4 b. 68 =(9585000+15000*B4)/150000 Decrease =71-C4 Per share 5 c. 63 =(9585000+15000*B5)/150000 Decrease =71-C5 Per share 6