Kiser Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $78. The current price is $100 per share, and there are 25 million shares outstanding. The rights offer would raise a total of $50 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

Kiser Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $78. The current price is $100 per share, and there are 25 million shares outstanding. The rights offer would raise a total of $50 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

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter8: Securities Law Considerations When Obtaining Venture Financing

Section: Chapter Questions

Problem 1cM

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This is a complete question & solution is also attached just explain the calculations or rework it . Thanks Question : ABC Inc in considering a right offer . The company has considered that the Ex-right price would be the $52 . The current price is $55 per share & there are 5 Million shares outstanding .The right offer would raise a total of $60 Million .What is the subscription price? Solution : Attached Below
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