international Sealants Inc. is considering a rights offering to raise new equity capital. The firm currently has 1,375,000 shares outstanding that are seting for $42.50 per share The company wants to raise $10,000,000 in new equity funding. They plan to price shares in the rights offering at $35. How many rights will be required to purchase a new share? (Present your answer to two decimal places, e.g. 3.87) Numeric Response

international Sealants Inc. is considering a rights offering to raise new equity capital. The firm currently has 1,375,000 shares outstanding that are seting for $42.50 per share The company wants to raise $10,000,000 in new equity funding. They plan to price shares in the rights offering at $35. How many rights will be required to purchase a new share? (Present your answer to two decimal places, e.g. 3.87) Numeric Response

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter11: Venture Capital Valuation Methods

Section: Chapter Questions

Problem 8EP

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A firm wants to raise $40 million through a rights offering. The subscription price is set at $40. Currently, the company has 3 million shares outstanding with a current market price of $50 a share. Each shareholder will receive one right for each share of stock they currently own. How many rights will be needed to purchase one new share of stock in this offering? 4 6.
The management of LTTP Corp. is preparing for issuing equity to fund a new project. Rights offeris used. The company has determined that the ex-rights price would be $53. The current price is $58per share, and there are 10 million shares outstanding. The rights offer would raise a total of $45million. What is the subscription price? can you handwrite it please
The management of LTTP Corp. is preparing for issuing equity to fund a new project. Rights offeris used. The company has determined that the ex-rights price would be $53. The current price is $58per share, and there are 10 million shares outstanding. The rights offer would raise a total of $45million. What is the subscription price?
Farah’s Fine Fashions (FFF) is considering raising money through a rights offering. FFF currently has 10 million shares outstanding selling for $22 per share. Current shareholders will receive one right per share. Five rights are required to buy one share for $20. Will the rights be exercised and if so, what is FFF’s new market value if all rights are exercised? Select one: a. The rights will not be exercised. b. $220 million c. $260 million d. $321 million e. None of the above.
The Whistling Straits Corporation needs to raise $60 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $21 per share and the company's underwriters charge a spread of 7 percent, how many shares need to be sold? (Do not round intermediate calculations and round your answer to nearest whole number, e.g., 1,234,567.) Number of shares offered 3,133,641
Brown Mines needs $1.2 billion of new equity.Market price is $25.Brown Mines decides to raise addtional funds by offering the right to buy 4 new shares for 16 at $12 per share.WIth 100% subscription,what is value of each right? A.$10.4 B.8 C.16 D.9.6
A hypothetical corporation, Cascade Strategic & Innovative Solutions, has decided to raise capital through a rights offering. The company has 2,000,000 outstanding shares of stock with a market value of $55 per share. Cascade would like to raise an additional $15,000,000 in capital through a rights offering. The company will set the subscription price at $25 per new share. How many rights will be required to purchase 30 shares? 300 rights 10 rights 30 rights O 100 rights
ZEC Corporation currently has 4 million shares outstanding. The stock sells forRM35 per share. The company wants to raise RM20 million to finance a new project,the firm is considering a rights offering at RM25 per share.Calculate the following:(i) Number of shares to issued(ii) Number of rights needed to purchase one share(iii) Value of the right(c) Discuss the advantages of rights offering.
Don’s Captain Morgan, Inc. needs to raise $12.70 million to finance plant expansion. In discussions with its investment bank, Don’s learns that the bankers recommend an offer price (or gross proceeds) of $20.60 per share and Don’s will receive $16.75 per share. Calculate the underwriter’s spread per share on the issue. (Round your answer to 2 decimal places.) How many shares of stock will Don’s need to sell in order to receive the $12.70 million it needs? (Round your answer to the nearest whole number.)
A hypothetical corporation, Cascade Strategic & Innovative Solutions, has decided to raise capital through a rights offering. The company has 2,000,000 outstanding shares of stock with a market value of $55 per share. Cascade would like to raise an additional $15,000,000 in capital through a rights offering. The company will set the subscription price at $25 per new share. What is the value of one right in this scenario? $10 approximately $8.33 approximately $6.92 approximately $12.69
A hypothetical corporation, Cascade Strategic & Innovative Solutions, has decided to raise capital through a rights offering. The company has 2,000,000 outstanding shares of stock with a market value of $55 per share. Cascade would like to raise an additional $15,000,000 in capital through a rights offering. The company will set the subscription price at $25 per new share. What is the value of one right in this scenario? O $10 approximately $8.33 O approximately $6.92 approximately $12.69 oo
Rock Industries has hired the investment banking firm to help for going public. Rock and investment bank agree that Rock's current value of equity is $75 million. Rock currently has 5 million shares outstanding and will issue 2 million new shares. Investment bank charges a 7% spread. What is the offer price based on this information? a. $10.93 b. $15.00 c. $14.59 d. $10.71