Homework Answers
Shares outstanding after rights = current shares+rights per shares*current shares
=2000*(1/2)*2000 = 3000
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The market o price of the common stock of PQR Inc. is $70 per share. There...
The market price of the common stock of PQR Inc. is $70 per share. There are...
The market price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding PQR is considering a preemptive rights offering. Each current shareholder will get one right for every two shares owned. With each right and a $40 payment a new share can be purchased. Assume all the rights are exercised. What will be the market cap of PQR after the exercise of the preemptive rights?
just Excrcise 16: Relation of rights to EPS and the price-carnings ratio Walker Machine Tools has 7 million shares of common stock outstanding. The current market price of Walker common stock is S82 p...
just
Excrcise 16: Relation of rights to EPS and the price-carnings ratio Walker Machine Tools has 7 million shares of common stock outstanding. The current market price of Walker common stock is S82 per share rights-on. The company's net income this year is $25 million. A rights offering has been announced in which 700,000 new shares will be sold at $76.50 per share. The subscription price plus seven rights is needed to buy one of the new shares. a. What...
EAA corporation currently has 3 million shares outstanding. the stock sells for $40 per share. to...
EAA corporation currently has 3 million shares outstanding. the stock sells for $40 per share. to raise $20 million for a new project, the firm is considering a rights offering at $25 per share. a. what is the total number of shares assuming all shareholders exercised their right b. the value of EAA corporation at the end of the right issue c. what is the ex-right price d. what is the value of a right in EAA corporation
Mr. and Mrs. Anderson own six shares of Magic Tricks Corporation's common stock. The market value...
Mr. and Mrs. Anderson own six shares of Magic Tricks Corporation's common stock. The market value of the stock is $70. The Andersons also have $56 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $56 for each six shares currently owned (based on six rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right? b....
Valiant Industries has 30 million shares of stock outstanding at a price of $25.44 per share....
Valiant Industries has 30 million shares of stock outstanding at a price of $25.44 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 six rights held by the stockholder, they can buy one share at a price of $24.00 per share. If all rights are exercised, how much money will be raised in this offer?
Suppose you own 50,000 shares of common stock in a firm with 2.5 million total shares...
Suppose you own 50,000 shares of common stock in a firm with 2.5 million total shares outstanding. The firm announces a plan to sell an additional 1 million shares through a rights offering. The market value of the stock is $33 before the rights offering and the new shares are being offered to existing shareholders at a $3 discount. a. If you exercise your preemptive rights, how many of the new shares can you purchase? b. What is the market...
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...
Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value...
Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have $48 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $48 for each three shares currently owned (based on three rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right? Value...
Mr and Mrs. Anderson own five shares of Magic Tricks Corporation's common stock. The market value...
Mr and Mrs. Anderson own five shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have $42 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $42 for each five shares currently owned (based on five rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right? Value...
Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value...
Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have $48 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $48 for each three shares currently owned (based on three rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right? Value...
The market price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding PQR is considering a preemptive rights offering. Each current shareholder will get one right for every two shares owned. With each right and a $40 payment a new share can be purchased. Assume all the rights are exercised. What will be the market cap of PQR after the exercise of the preemptive rights?
just
Excrcise 16: Relation of rights to EPS and the price-carnings ratio Walker Machine Tools has 7 million shares of common stock outstanding. The current market price of Walker common stock is S82 per share rights-on. The company's net income this year is $25 million. A rights offering has been announced in which 700,000 new shares will be sold at $76.50 per share. The subscription price plus seven rights is needed to buy one of the new shares. a. What...
Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have $48 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $48 for each three shares currently owned (based on three rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right? Value...
Mr and Mrs. Anderson own five shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have $42 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $42 for each five shares currently owned (based on five rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right? Value...
Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have $48 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $48 for each three shares currently owned (based on three rights). (Do not round intermediate calculations and round your answers to the nearest whole dollar.) a. What is the value of a right? Value...
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