What was the total amount of new money raised

Assignment Help Financial Management

Reference no: EM132064348

In 2015, the NCI Company made a rights issue at $5 a share of one new share for every four shares held. Before the issue there were 10 million shares outstanding and the share price was $6.

a. What was the total amount of new money raised?

b. The rights issue gave the shareholder the opportunity to buy one new share for less than the market price. What was the value of this opportunity?

c. What was the prospective stock price after the issue?

d. How far could the total value of the company fall before shareholders would be unwilling to take up their right?

Reference no: EM132064348

Questions Cloud

Explain risk faced by your bank in spot market : EXPLAIN the risk faced by your bank in the spot market and DETERMINE the futures position that Treasury desk should take in order to hedge against this risk.

What is the significance of the number 24 : Who might the 24 elders of the throne room vision represent? What is the significance of the number 24?

Conduct an interview with a nurse : Develop a plan for their chosen career path. Students may either conduct an interview with a nurse in the same or similar position

Case study on ashok leyland : Ashok Leyland, one of India's largest private companies, is a part of Hinduja Group. It is one of the country's largest automobile and auto component companies

What was the total amount of new money raised : What was the total amount of new money raised? The rights issue gave the shareholder the opportunity to buy one new share for less than the market price.

Evaluate the validity of prophetic interpretation approach : Evaluate the validity of the "prophetic interpretation" approach to the letters to the seven churches.

Global supply chain management and international logistics : Answer the following questions from Global Supply Chain Management and International Logistics, Alan E. Branch

Create a falls program for an imaginary institution : You will work in groups of two and create a Falls Program for an imaginary institution. The choice of institution is yours to decide.

What is accounting and economic break-even level of sales : What is the accounting and economic break-even level of sales respectively?

User Account

All Pages