Hassinah, Incorporated, is proposing a rights offering. Presently there are 1,000,000shares outstanding at $78 each. There will be 100,000 new shares offered at $70 each.a. What is the new market value of the company? (Do not round intermediatecalculations.)b. How many rights are associated with one of the new shares? (Do not roundintermediate calculations.)c. What is the ex-rights price? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)d. What is the value of a right? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)a. New market valueb. Number of rights neededc. Ex-rights priced. Value of a right

Right shares are offered to existing shareholders in proportion of their existing shareholding.

Answered: Hassinah, Incorporated, is proposing a…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

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Problem 4EP

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