Construct a coercive rights offering

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Your firm has $200 million of debt outstanding (held by 600 creditors) and $300 million of equity outstanding (held by 300,000 shareholders).

Construct a coercive rights offering to raise $100 million in new equity. How does your example change if you have no debt outstanding? How does your example change if you want to raise $200 million?

Reference no: EM131243067

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