Problem 15.01 – Rights Offerings
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Find the new market value of the company, how many rights are needed, the ex-rights price, and the value of a right.
Find the new market value of the company, how many rights are needed, the ex-rights price, and the value of a right.
Find the maximum and minimum possible subscription price. Then, given a subscription price, find out many shares to be sold and the rights needed to buy a share. Then find the ex-rights price and the value of a right. Lastly, given the shareholder’s shares, find the portfolio value before and after the offer.
 Before the offering, find how many current shares.
Find what your would profit be, expected profit, and the principle you illustrated.
Figure out how many shares need to be sold given how much the company needs to raise, its offer price, and spread.
Find the flotation costs with the given information.
Find the new book value per share, new total earnings, new EPS, new stock price, new market-to-book ratio, and net income.
Which accurately describes venture capitalists?
How can a shareholder or investor obtain additional shares through a rights issue?
What are the benefits associated with shelf registration?