Berczy Inc. is proposing a rights offering. Currently there are 400,000 shares outstanding at $44 each. There will be 10

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answerhappygod
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Berczy Inc. is proposing a rights offering. Currently there are 400,000 shares outstanding at $44 each. There will be 10

Post by answerhappygod »

Berczy Inc. is proposing a rights offering. Currently there are
400,000 shares outstanding at $44 each. There will be 100,000 new
shares offered at $35 each.
a. What is the new market value of the
company? (Omit $ sign in your response.)
New market value
$
b. How many rights are associated with one
of the new shares?
Number of rights needed
c. What is the ex-rights
price? (Round the final answer to 2 decimal
places. Omit $ sign in your
response.)
Ex-rights price
$
d. What is the value of a
right? (Do not round your intermediate calculations.
Round the final answer to 2 decimal
places. Omit $ sign in your
response.)
Value of a right
$
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