What is the ex-rights price per share

Assignment Help Financial Management
Reference no: EM13810325

TUV Guy Inc. is proposing a rights offering. There are currently 240,000 shares outstanding at $80 each. There will be 60,000 new shares offered at $60 each.

a) What is the new market value of the company?

b) How many rights are associated with one of the new shares?

c) What is the value of a right?

d) What is the ex-rights price per share?

 

e) Why might a company have a rights offering rather than general cash offer?

Reference no: EM13810325

Questions Cloud

Paper comparing the two primary considerations : Write a paper comparing the two primary considerations, from the aviation security viewpoint, of both landside and terminal security system design planning.
What annual savings can aqua system expect : Aqua System Inc. expects to have $18,526,400 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 1 days of float, releasing funds which, when invested, will earn 12.10 perc..
How much are home owners paying in annual mortgage interest : Suppose home owners owe $5.5 trillion in mortgage loans. If the mortgage interest rate is 5 percent, approximately how much are home owners paying in annual mortgage interest? $? If the interest rate drops to 4 percent, by how much will annual intere..
A firm is financed with twice as much debt as equity : A firm is financed with twice as much debt as equity, incurs a 7% cost of debt, 16.5% cost of equity, and a 34% tax rate. What is the required return on assets?
What is the ex-rights price per share : TUV Guy Inc. is proposing a rights offering. There are currently 240,000 shares outstanding at $80 each. There will be 60,000 new shares offered at $60 each. What is the new market value of the company? How many rights are associated with one of the ..
Analyze the concept of white privilege and how it may affect : Analyze the concept of white privilege and how it may affect
Discuss the project manager role in managing risk : Discuss the Project Manager's role in managing risk. Hypothesize if a certain expertise is required to adequately identify and assess project risks. For example:
How is relevant costing used in decision making : How is relevant costing used in decision making? What would the relevant costs be in deciding whether to discontinue a segment of business? What would the relevant costs be in deciding how to optimize use of a constrained resource?
What is the balance of the accumulated depreciation account : The balance in the accumulated depreciation account of Golf Corporation as on April 1st 2011 was Rs 2,00,000 when the original cost of assets was Rs 10,00,000. The company charges 10% depreciation on a straight-line basis. One such asset costing Rs 5..

Reviews

Write a Review

Financial Management Questions & Answers

  Use at least two capital budgeting methods

TCO F) Company A has the opportunity to do any, none, or all of the projects for which the net cash flows per year are shown below. Projects A and B can be done together. Projects B and C can be done together. But Projects A and C are mutually ..

  Calculate the amount of the firm’s income before tax

Banana Box Corporation has sales of $4,308,180; income tax of $524,253; the selling, general and adding expenses of $253,164; depreciation of $385,242; cost of goods sold of $2,461,700; and interest of $194,377. Calculate the amount of the firm’s inc..

  What are the advantages blades could gain from importing

What are the advantages Blades could gain from importing from and/or exporting to a foreign country such as Thailand and what are some of the disadvantages Blades could face as a result of foreign trade in the short run? In the long run?

  Explain what is the firm''s weighted average cost of capital

Fancee Restaurant's cost of equity is 15.3 percent and its aftertax cost of debt is 6.1 percent. What is the firm's weighted average cost of capital if its debt-equity ratio is 0.58 and the tax rate is 30 percent?

  What is the maximum constant amount

In order to save for his retirement, Dale Falcinelli makes the first of 8 equal annual deposits into an investment on June 6, 2014.He believes the investment will always earn 10% a year. The last deposit will be made on June 6, 2021. What's the maxim..

  Risk-free rate of return and expected return on the market

The beta of M Simon Inc., stock is 1.3, whereas the risk-free rate of return is 0.08. If the expected return on the market is 0.14, then what is the expected return on M Simon Inc?

  Project will need an initial investment

New Co is considering investing in a new hotel project. The project will need an initial investment of 1,000,000 in year zero and will generate 500,000 (after tax) cash flows for the four subsequent years.

  What is the yield to maturity on a treasury strips

What is the yield to maturity on a Treasury STRIPS with 10 years to maturity and a quoted price of 58.353? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

  What is the equal annual consumption

Linus is 18 years old now, and is thinking about taking a 5-year university degree. The degree will cost him $25,000 each year. After he's finished, he expects to make $50,000 per year for 10 years, $75,000 per year for another 10 years, and $100,000..

  Horizontal analysis of income statement and balance

horizontal analysis of income statement and balance sheetprepare a three-year horizontal analysis of the income

  The directors of uw plc are keen to attract internal

the directors of uw plc are keen to attract internal investment to support the expansion of sales.the company buys raw

  Exchange rates and market rates

What do you call a check that a bank writes on its own account made payable to a third party on your behalf? The FDIC and NCUA insure non-retirement accounts in banks, savings & and loans, and credit unions for up to: Assume the following exchange ra..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd