PRIN.OF CORPORATE FINANCE
PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 15, Problem 25PS

Rights issues vs. cash offers Suppose that instead of having a rights issue of new stock at €4 (see Problem 23), Pandora decided to make a general cash offer at €4. Would existing shareholders still be just as well off? Explain.

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