Price ex- rights = (Value before right issue+Proceeds from right issue)/Shares after right issue | ||||
Issue price | Price ex -rights | Effect | Amount | |
89 | 89 | No effect | 0 | per share |
83 | 87.79623824 | Decrease | 1.203761755 | per share |
77 | 86.59247649 | Decrease | 2.407523511 | per share |
Problem 15-8 Price Dilution [LO3] Nemesis, Inc., has 255,000 shares of stock outstanding. Each share is...
Nemesis, Inc., has 255,000 shares of stock outstanding. Each share is worth $89, so the company's market value of equity is $22,695,000. Suppose the firm issues 64,000 new shares at the following prices: $89. $83, and $77. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "O" Round your answers...
Problem 15-8 Price Dilution [LO3] 2 Nemesis, Inc., has 235,000 shares of stock outstanding. Each share is worth $85, so the company's market value of equity is $19,975,000. Suppose the firm issues 56,000 new shares at the following prices: $85, $79, and $73. 01:53:13 What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the...
Problem 15-8 Price Dilution [LO3] Nemesis, Inc., has 215,000 shares of stock outstanding. Each share is worth $81, so the company's market value of equity is $17,415,000. Suppose the firm issues 48,000 nev shares at the following prices: $81, $75, and $69. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and...
Nemesis, Inc., has 210,000 shares of stock outstanding. Each share is worth $80, so the company’s market value of equity is $16,800,000. Suppose the firm issues 46,000 new shares at the following prices: $80, $74, and $68. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0". Round your answers...
Crawford, Inc., has 115,000 shares of stock outstanding. Each share is worth $44, so the company's market value of equity is $5.060,000. Suppose the firm issues 20.000 new shares at the following prices: $44. $41, and $36. 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...
Crawford, Inc., has 105,000 shares of stock outstanding. Each share is worth $72, so the company's market value of equity is $7,560,000. Suppose the firm issues 20,000 new shares at the following prices: $72, $69, and $64. 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...
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...
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...
Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s market value of equity is $4,510,000. Suppose the firm issues 19,000 new shares at the following prices: $41, $38, and $33. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0". Round your answers...
Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s market value of equity is $4,510,000. Suppose the firm issues 19,000 new shares at the following prices: $41, $38, and $33. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0". Round your answers...