ABC Ltd. has decided to raise capital via a rights issue. The share price is currently K5.50 and ABC intends to raise K5m. There are currently 6.25m shares in issue and ABC is offering a 1 for 5 rights issue.
Calculate the Ex-Rights Price.
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
QUESTION 2 ABC Ltd. has decided to raise capital via a rights issue. The share price is currently $5.50 and ABC intends to raise $5m. There are currently 6.25m shares in issue and ABC is offering a 1 for 5 rights issue. Calculate the Ex-Rights Price. (4 marks) BBC Co is a medium-sized manufacturing company which is considering a 1 for 5 rights issue at a 15% discount to the current market price of $4.00 per share. Issue costs are...
WUV Ltd. wants to raise $3.29 million via a rights offering. The company currently has 420,000 shares of common stock outstanding that sell for $30 per share. Its underwriter has set a subscription price of $25 per share and will charge WUV a 6% spread. If you currently own 6,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?
1) (15 marks) Quick Computing Inc. has decided to use a rights offering to raise $5,000,000. The firm currently has 500,000 shares of common stock outstanding selling at a market price of $68 per share. The firm plans to issue 100,000 new shares through this offering at a subscription price of $50. a. How many rights are required to purchase one share? (1 Mark) b. What is the value of a right? (2 Marks) What is the ex-rights price of...
The directors of Siedu Ltd. have recently announced a record increase in payment for the half-year ended 30th September 2005. On announcement date, the company’s equity share price was ¢3000, its highest level for many months, giving it an equity market capitalization of approximately ¢480 billion. On the same day as the profits announcement, the directors declared their intention of raising funds via a rights issue in order to finance a major expansion in Siedu Ltd’s overseas operations. Their aim...
Knoll Consulting wants to raise $20,000,000 to expand their operations. The company is going to issue 250,000 new shares through a rights offering with a subscription price of $80.00. Knoll currently has 500,000 shares outstanding at a price of $130.00 per share. What will the new market value of the company be? How many rights will be needed to buy one new share? What will the ex-rights price be? What is the value of a right?
Prahm Corp. wants to raise $4.1 million via a rights offering.
The company currently has 470,000 shares of common stock
outstanding that sell for $42 per share. Its underwriter has set a
subscription price of $17 per share and will charge the company a
spread of 5 percent.
If you currently own 5,000 shares of stock in the company and
decide not to participate in the rights offering, how much money
can you get by selling your rights?
I tried...
Selling Rights [LO4] Prahm Corp. wants to raise $5.5 million via a rights offering. The company currently has 580,000 shares of common stock outstanding that sell for $45 per share. Its underwriter has set a subscription price of $20 per share and will charge the company a spread of 6 percent. If you currently own 5,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your...
Prahm Corp. wants to raise $4 million via a rights offering. The company currently has 460,000 shares of common stock outstanding that sell for $41 per share. Its underwriter has set a subscription price of $16 per share and will charge the company a spread of 6 percent. If you currently own 4,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights? (Do not...
Prahm Corp. wants to raise $5.1 million via a rights offering. The company currently has 570,000 shares of common stock outstanding that sell for $52 per share. Its underwriter has set a subscription price of $27 per share and will charge the company a spread of 6 percent. If you currently own 5,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?
Belford Corp. wants to raise $4.9 million via a rights offering. The company currently has 590,000 shares of common stock outstanding that sell for $86 per share. Its underwriter has set a subscription price of $41 per share and will charge the company a spread of 6%. If you currently own 2,800 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?