Suppose you own 500,000 shares of common stock in a firm with 40 million total shares outstanding. The firm announces a plan to sell an additional 5 million shares through a rights offering. The market value of the stock is $32.5 before the rights offering and the new shares are being offered to existing shareholders at a $2.50 discount. If you exercise your preemptive rights, how many of the new shares can you purchase? a. 100,000 shares b. 50,000 shares c. 62,500 shares d. 32,500 shares e. 45,000 shares

Please answer is 24840, only post if your answer comes this with explanation and concept. Thabks!

Atlas Inc. currently has 20 million shares outstanding. The current stock price is $35/share. The company has decided to do a rights issue. Every existing shareholder will be given 1 right for each share that they own. It will take 4 rights to buy one new share at a price of $25 per share. How much money will the company raise if all of the rights are exercised?   Question 9 options:   A)  $700,000,000   B)  $450,000,000   C)  $500,000,000   D)  $125,000,000   E)  $105,000,000

You are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a single cash payment back to you in the future. Details of each investment appears here:. Calculate the IRR of each investment. State your answer to the nearest basis point (i.e., the nearest 1/100th of 1%, such as 3.76%). The yield for investment A is %. (Round to two decimal places.) Initial Future Investment Investment Value Im A $1,900 $4,029 B $9,600 $13,121 C $500 D $3,200 E $5,900 Data table $1,759 $4,139 $9,079 End of Year 11 9 18 3 12 I X

You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both if you $1.20 in dividends and $30 from the sale of the share at the end of the year. The maximum price you would pay for a share today is wanted to earn a 12% return. Multiple Choice O O O $26.79 $27.86 $27.46 $35.45

Bernard Corporation wants to obtain P4 million in its first public issue of common stock. After the issuance, the total market value of a stock is estimated at $10  million. At present, there are 120,000 closely-held shares. REQUIREMENTS: (a) What is the amount of new shares that must be issued to obtain the P4 million? (b) After the stock issuance,  what will be the expected price per share?

Bin plc is taking over Sum plc and has offered two Bin shares for every three Sum shares. You have the following information:                                                Bin plc            Sum plc Current share price:             £3.01              £1.48 Number of shares:               20m                10m Market value:                        £60.2m           £14.8m Distributable earnings:        £5.6m             £1.23m Synergy is expected to produce a 5% increase of the combined earnings. The market will apply a price/earnings ratio of 10.75 times to the new entity. What is the expected change in the wealth of Sum's shareholders? Answers: 10.2%   15.2%   25.7%   30.3%   35.6%