What is the subscription price? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter8: Securities Law Considerations When Obtaining Venture Financing
Section: Chapter Questions
Problem 1cM
icon
Related questions
Question

Kiser Mfg. is considering a rights offer. The company has determined that the ex- rights price will be $69. The current price is $75 per share, and there are 20 million shares outstanding. The rights offer would raise a total of $40 million. What is the subscription price? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage