Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s market value of equity...

Question

Question

Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s market value of equity...

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 to 2 decimal places, e.g., 32.16.)

		Price Ex-Rights	Effect	Amount
a.	$41	$	(Click to select)Price drops byNo changePrice raises by	$	per share
b.	$38	$	(Click to select)Price drops byNo changePrice raises by	$	per share
c.	$33	$	(Click to select)Price raises byPrice drops byNo change	$	per share

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Computation of Ex-rights price and change in price at different offering prices: Rights Price Particulars S41 S38 S33 aNumber Final answer: Price Ex-rights Effect Amount a $41 S41 No change SOper Share b $38 $40.56 Price Drops by S0.44 per Share c $33

Add a comment

Answer 2

Similar Homework Help Questions

Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s...

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...
Nemesis, Inc., has 210,000 shares of stock outstanding. Each share is worth $80, so the company’s market value of eq...

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...

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...

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 iss...

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 255,000 shares of stock outstanding. Each share is worth $89, so the company's...

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...
Crawford, Inc., has 105,000 shares of stock outstanding. Each share is worth $72, so the company's...

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...

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...

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 105,000 shares of stock outstanding. Each share is worth $72, so the company’s...

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...

Problem 15-8 Price Dilution [LO3] Nemesis, Inc., has 255,000 shares of stock outstanding. Each share is...

Problem 15-8 Price Dilution [LO3] 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. (8 01:57:19 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...

Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s market value of equity...

Homework Answers

Add Answer to:
Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s market value of equity...

Post as a guest

Earn Coins