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Rainbow Corp. has stock that currently sells for $12 per share, and there are 6 million shares outstanding. It has announced rights offer to raise $5 million, with the subscription price set at $5 per share. The following rights offer timetable is planned January 4, 2024 - announcement date February 8, 2024 - holder of record date February 23, 2024 - rights expiration date THIS IS ONE QUESTION ONLY USE FORMULA AND EQUATIONS DO NOT USE EXCEL Suppose you own 3,000 shares of Rainbow Corp. stock. a. How many shares must be sold to raise the required amount? b. How many rights are required to buy one new share? c. What is the value of a right? d. What is the ex-rights price? e. What is the ex-rights date? What is your wealth position and percentage ownership in this company on the announcement date? f. What is your wealth position and percentage ownership in this company if you decide to sell your rights before the expiration date? g. What is your wealth position and percentage ownership in…

You purchase 350 shares of Universal Metals common stock at $12.38 per share. A few months later you sell the shares at $9.88. Your stockbroker charges 3% commission on round lots and an extra 1.5% on odd lots.   Hint: Use the following formula model to calculate the Number of round lot shares purchased:= RoundDown ( Total number of shares purchased / 100, 0 ) * 100   a. What is the total cost of the purchase?   Total number of shares purchased = Round lot commission rate = Extra add-on rate for odd lot commissions = Odd lot commission rate = Cost of stock per share = Number of round lot shares purchased = Number of odd lot shares purchased = Total cost =   b. What are the proceeds of the sale?   Selling price per share = Proceeds =   c. What is the gain or loss on the transaction?   Gain =

Raghubhai

Wetterau, Incorporated, has announced a rights offer to raise $2.19 million. The company's stock currently sells for $77 per share, there are 165,000 shares outstanding, and one right will be granted for each outstanding share. The subscription price is set at $73 per share. What is the ex-rights price per share?

Answer is 24840, pls explain stepwise only post if ans matches

XYZ Corp. has announced that it will take four rights to buy a new share in the offering at a subscription price of $35. At the close of business, the day before the ex- rights day, the company's stock sells for $60 per share. The next morning, you notice that the stock sells for $53 per share and the rights sell for $6 each. Are the stock and/or the rights correctly priced on the ex-rights day? Describe a transaction in which you could use these prices to create an immediate profit.

Young Corporation stock currently sells for $20 per share. There are 1 million shares currently outstanding. The company announces plans to raise $4 million by offering shares to the public at a price of $20 per share. a. If the underwriting spread is 8%, how many shares will the company need to issue in order to be left with net proceeds (before other administrative costs) of $4 million? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Number of shares 217,391 b. If the under writing spread is 8% and the other administrative costs are $45,000, what is the dollar value of the total direct costs of the issue? Note: Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. Total direct costs c. If the share price falls by 4% at the announcement of the plans to proceed with a seasoned offering, what is the dollar cost of the announcement effect? Note: Enter your…

provide answer with correct option please

Atlas Inc. currently has 20 million shares outstanding. The current stock price is $35/share. The company has decided to do a rights issue. Every existing shareholder will be given 1 right for each share that they own. It will take 4 rights to buy one new share at a price of $25 per share. How much money will the company raise if all of the rights are exercised?   Question 9 options:   A)  $700,000,000   B)  $450,000,000   C)  $500,000,000   D)  $125,000,000   E)  $105,000,000

Owe

Young Corporation stock currently sells for $60 per share. There are 1 million shares currently outstanding. The company announces plans to raise $6 million by offering shares to the public at a price of $60 per share.   a. If the underwriting spread is 9%, how many shares will the company need to issue in order to be left with net proceeds (before other administrative costs) of $6 million ? (Do not round intermediate calculations. Round your answer to the nearest whole number.)   b. If the under writing spread is 9% and the other administrative costs are $55,000, what is the dollar value of the total direct costs of the issue? (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)   c. If the share price falls by 2% at the announcement of the plans to proceed with a seasoned offering, what is the dollar cost of the announcement effect? (Enter your answer in dollars not in millions.)

A venture capital company buys  400,000 new shares of a start-up’s stock for $6.40 million. If the company has 2.3 million shares outstanding prior to the purchase, what is the company’s pre-money value? What is its post-money value? Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.

Simmons Mineral Operations, Inc., (SMO) currently has 430,000 shares of stock outstanding that sell for $50 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:    a. SMO has a four-for-three stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)      New share price $       b. SMO has a 10 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)      New share price $       c. SMO has a 43.5 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)      New share price $       d. SMO has a three-for-seven reverse stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)      New share price $      e. Determine the new number of shares outstanding in parts…

Quantum Tech Corp. is currently selling at $25 per share. There are 4 million shares outstanding. The company is planning to raise $8 million to finance a new project. Assuming 100% exercise of rights, what are the (1) ex-rights stock price, (2) the value of a right, and (3) the appropriate subscription prices under the following scenarios? a. Two shares of outstanding stock are entitled to purchase one additional share of the new issue. b. Four shares of outstanding stock are entitled to purchase one additional share of the new issue. c. In scenario b, how far could the stock price fall before shareholders would be unwilling to exercise their rights?

Myers Inc. currently has 5, 750,000 shares outstanding, and they trade at a price of $23.76. They need to raise $35,000,000 in new funding, and will execute a Rights Offering at a subscription price of $18.00 per share. At the current share price, what will be the price of one Right leading up to the subscription? Group of answer choices $3.04 $1.46 $1.74 $22.30 $2.96

Bethesda Biosys issues an IPO on a best-efforts basis. The company's investment bank requires a spread of 18 percent of the selling price. The average selling price is expected to be $25 per share. Four million shares are issued. What are the net proceeds for the issuer? O $102 million O $92 million O $82 million O $100 million

Rob Thomas Traders opened an account to short-sell 1,000 shares of WeWork at $60. The initial margin requirement was 50%.  (The margin account pays no interest.) A year later, the price of WeWork has risen from $60 to $76, and the stock has paid a dividend of $2.75 per share. a. What is the remaining margin in the account? b. If the maintenance margin requirement is 35%, will Rob Thomas Traders recieve a margin call?

In 2001 the Pandora Box Company made a rights issue at $5 a share to its current shareholders offering one new share for every four shares already held. Before the issue there were 10 million shares outstanding and the share price was $6. (1a) What was the total amount of new money raised? (1b) What was the prospective stock price after the issue? (1c) What was the value of the right to buy one new share? (1d) How far could the total value of the company fall before share-holders would be unwilling to take up their rights? (1e) Explain the difference between a uniform-price auction and a discriminatory auction. Why might you prefer to sell securities by one method rather than another?

Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams at $50 per share. The initial margin requirement was 50% (the margin account pays no interest.) A year later, the price of Internet Dreams has risen from $50 to $55, and the stock has paid a dividend of $1 per share. What is the remaining margin in the account? $19.000 $15,000 $12,000 $18,000