Calculate the ex-right stock price, Finance Basics

Assignment Help:

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? 

 

 


Related Discussions:- Calculate the ex-right stock price

Stock exchange market, Stock Exchange Market The Idea and improvemen...

Stock Exchange Market The Idea and improvement of a Stock Exchange Stock exchange also identified as stock markets are special "market places" whereas already held bond

Traditional business of deposit taking and lending, Question 1: i) Disc...

Question 1: i) Discuss  the main risks facing a retail bank in its traditional business of deposit taking and lending? ii) How can a bank manage the risks related to credit

Determine the required rate of return on the security, Elephant Company com...

Elephant Company common stock has a beta of 1.2. The risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the security.

What do you mean listing of securities, What do you mean listing of securit...

What do you mean listing of securities? Explain. Listing of Securities: Listing means admission of the securities to dealings on a recognized stock exchange. Securities of an

Sole proprietorship, Sole Proprietorship Definition - A sole proprietor...

Sole Proprietorship Definition - A sole proprietorship or sole tradership is the oldest and simplest form of business. It is that type of business organization where one person

Computer the fair value of the stock, Future Ltd is a leading music enterta...

Future Ltd is a leading music entertainment company in the country and the stocks of the company are actively traded in the stock exchange. For the year just ended few days back,

State about the odd-lot dealer, State about the Odd-lot Dealer He/she...

State about the Odd-lot Dealer He/she specializes in buying and selling in amounts which are less than present trading units. They buy and sell odd lots, make them up into ma

Operational and financial aspects , In mergers, acquisitions, or other rela...

In mergers, acquisitions, or other relationships between hospitals and physician groups, what are the benefits to each party from entering into an arrangement with the other? What

What are the financial fluctuations, What are the financial fluctuations? ...

What are the financial fluctuations? Financial Fluctuations: a. Financial market fluctuations can be a basis of macroeconomic instability. b. Are markets irrational? c

Write Your Message!

Captcha
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