The Tennis Shoe Company has concluded that additional equity financing will be needed to expand operations and that the needed funds will be best obtained through a ights offering. It has correctly determined that as a result of the rights offering, the share price will fall from $68 to $64.80 ($68 is the rights-on price; $64.80 is the ex-rights price, lso known as the when-issued price). The company is seeking $24 million in additional unds with a per-share subscription price equal to $40. How many shares are there currently before the offering? (Assume that the increment to the market value of the equity equals the gross proceeds from the offering.) (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Number of old shares

The Tennis Shoe Company has concluded that additional equity financing will be needed to expand operations and that the needed funds will be best obtained through a ights offering. It has correctly determined that as a result of the rights offering, the share price will fall from $68 to $64.80 ($68 is the rights-on price; $64.80 is the ex-rights price, lso known as the when-issued price). The company is seeking $24 million in additional unds with a per-share subscription price equal to $40. How many shares are there currently before the offering? (Assume that the increment to the market value of the equity equals the gross proceeds from the offering.) (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Number of old shares

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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