Problem 15.02 – Rights Offerings
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
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.
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