What is the new market value of the company

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Hickock, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $46 each. There will be 125,000 new shares offered at $38 each.

a. What is the new market value of the company? (Do not round intermediate calculations.)

New market value $

b. How many rights are associated with one of the new shares? (Do not round intermediate calculations.)

Number of rights needed

c. What is the ex-rights price? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Ex-rights price $

d. What is the value of a right? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Value of a right $

Reference no: EM131497461

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