Phone Company Inc. makes a rights issue at a subscription price of $7 a share. One new share can be purchased for every five shares held. Before the issue there were 20 million shares outstanding what is the total amount of new money raised? $20 million
Number of shares issued = 20,000,000 / 5 = 4,000,000 shares
Total amount of new money raised = 4,000,000 shares * $7 a share
Total amount of new money raised = $28,000,000
Phone Company Inc. makes a rights issue at a subscription price of $7 a share. One...
In 2010 the Pandora Box Company made a rights issue at €5 a share of one new share for every four shares held. Before the issue there were 10 million shares outstanding and the share price was €6. Suppose that the company had decided to issue new stock at €4 rather than €5. a. How many new shares would it have needed to sell to raise the same sum of money? (Enter your answer in whole numbers not in...
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?
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...
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...
Barrett Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $70. The current price is $77 per share and there are 20 million shares outstanding. The rights offer would raise a total of $40 million. What is the subscription price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Barrett Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $72. The current price is $82 per share and there are 40 million shares outstanding. The rights offer would raise a total of $80 million. What is the subscription price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Subscription price
Barrett Mfg. Is considering a rights offer. The company has determined that the ex-rights price will be $95. The current price Is $102 per share and there are 24 million shares outstanding. The rights offer would ralse a total of $60 million. What Is the subscription price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Subscription price
Keira Mfg. is considering a rights offer. The company has determined that ex-rights price would be $71. The current price is $76 per share and there are 19 million shares outstanding. The rights offer would raise a total of $60 million. What is the subscription price?
Bell Hill Mfg. is considering a rights offer. The company has determined that the ex-rights price would be $86. The current price is $95 per share, and there are 35 million shares outstanding. The rights offer would raise a total of $70 million. What is the subscription price?
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...