Calculate the ex-right stock price, Finance Basics

DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding.

 a. If DIY sets the subscription price to be $80 and one right will be issued for each outstanding share, calculate the ex-right stock price and the value of a right.

 b. Repeat part a if the subscription price is $10.

 c. If DIY wants the ex-right stock price to be $50, what must be the subscription price? 

 

 

Posted Date: 2/28/2013 12:01:32 AM | Location : United States







Related Discussions:- Calculate the ex-right stock price, Assignment Help, Ask Question on Calculate the ex-right stock price, Get Answer, Expert's Help, Calculate the ex-right stock price Discussions

Write discussion on Calculate the ex-right stock price
Your posts are moderated
Related Questions
Control of Pattern Formation Limbs such as all other organs have a pattern. What factor (or factors), environmental affects etc. are responsible for specific positioning of i

A+/A1 It is one of the top ratings that a ratings agency allots to an issuer or insurer. This rating indicates that the security or carrier has steady financial backing and ple

XYZ is considering a capital restructuring to allow $300 million in debt. Currently, XYZ is an all-equity firm with earnings before interest and taxes of $260 million. Assume unlev

Accounting Exercise AVM 386 Fall 2014 Misty Mark, an infamous archer, decided to open an archery business called Bows and Biceps. The following is a list of transactions for Bows

1) What happens to the portfolio standard deviations as the investor substitutes the foreign securities for the U.S securities? What combination of U.S and Japanese stock minimizes

Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g

How would you explain the value of financial planning to friends or family? Which topics will you discuss with children in your life? Which topics do you feel are most imp

explain the main sources of finance ?

Pick a product of your choice and identify the stages of production

ROA - Return on Assets The Average of the industry ROA was 10.02% for 2004, 6.81% for 2005, and 7.32% for 2006. The chart showed that Lenovo had a little bit higher ROA th