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A) Valiant Industries has 20 million shares of stock outstanding at a price of $48 per...

A) Valiant Industries has 20 million shares of stock outstanding at a price of $48 per share. The company wishes to raise more money and plans to do so through a rights issue. Every existing stockholder will receive one right for each share of stock held. For every four rights held by the stockholder, they can buy one share at a price of $28. If all rights are exercised, how much money will be raised in this offer?

B) In previous question, what will the price of a share be after the SEO, if all shareholders exercise their rights?

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Answer #1

Total share outstanding = 20,000,000 one share is equal to one right and for every four rights they can buy one share at 28 S

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