Calculate the ex-right stock price, Financial Management

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: 3/9/2013 5:10:23 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
What do you mean by pension funds? Pension funds: Pension funds give retirement income (as the form of annuities) to workers covered through a pension plan. They get cont

The securing of the working capital needed for the support of raises in accounts receivable and inventory related with an organizations initial expansion time.

The mortgage-backed securities dealt with till now are agency mortgage backed securities. There are other MBS which can be for any kind of real estate property.

The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they wi

The RBI, on behalf of the government, issues all T-Bills and Government dated securities. Being risk-free securities, they set the benchmark for the interest rate

What are the types of firms that securities firms and investment banking industry included? Into the USA, the securities firms and investment banking industry comprises several

Sovereign Rating This includes rating a country as to its creditworthiness, probability of default, etc.

In 2005, Mr. Gordon Brown's brought up a plan of action to help reduce poverty and boost economic development in Africa. The three essential elements of the 2005 development plan

Define Hedger - Market Participants A hedger desires to prevent price variation by locking in a purchase price of the underlying asset by a long position in a futures contract

Employees' Provident Fund (EPF) The Employees' Provident Fund (EPF) Act, 1952 is the earliest legislation related to old age income security in India. It is a contributory prov