11th Edition

ISBN: 9780077861704

Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 15, Problem 13QP

Value of a Right [LO4] Show that the value of a right just prior to expiration can be written as:

Value of a right = P R O − P X = ( P R O − P S ) / ( N + 1 )

where P_RO, P_S, and P_X stand for the rights-on price, the subscription price, and the ex-rights price, respectively, and N is the number of rights needed to buy one new share at the subscription price.

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Chapter 15, Problem 12QP

Chapter 15, Problem 14QP

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Chapter 15 Solutions

Fundamentals of Corporate Finance

Ch. 15.1 - Prob. 15.1ACQ Ch. 15.1 - Prob. 15.1BCQ Ch. 15.2 - What are the basic procedures in selling a new...Ch. 15.2 - What is a registration statement?Ch. 15.3 - Prob. 15.3ACQ Ch. 15.3 - Why is an initial public offering necessarily a...Ch. 15.4 - Prob. 15.4ACQ Ch. 15.4 - Prob. 15.4BCQ Ch. 15.5 - Prob. 15.5ACQ Ch. 15.5 - Suppose a stockbroker calls you up out of the blue...

Ch. 15.6 - What are some possible reasons why the price of...Ch. 15.6 - Explain why we might expect a firm with a positive...Ch. 15.7 - What are the different costs associated with...Ch. 15.7 - What lessons do we learn from studying issue...Ch. 15.8 - Prob. 15.8ACQ Ch. 15.8 - What questions must financial managers answer in a...Ch. 15.8 - Prob. 15.8CCQ Ch. 15.8 - When does a rights offering affect the value of a...Ch. 15.8 - Prob. 15.8ECQ Ch. 15.9 - What are the different kinds of dilution?Ch. 15.9 - Is dilution important?Ch. 15.10 - What is the difference between private and public...Ch. 15.10 - Prob. 15.10BCQ Ch. 15.11 - What is shelf registration?Ch. 15.11 - Prob. 15.11BCQ Ch. 15 - Prob. 15.1CTF Ch. 15 - Smythe Enterprises is issuing securities under...Ch. 15 - Prob. 15.4CTF Ch. 15 - Prob. 15.7CTF Ch. 15 - Debt versus Equity Offering Size [LO2] In the...Ch. 15 - Debt versus Equity Flotation Costs [LO2] Why are...Ch. 15 - Bond Ratings and Flotation Costs [LO2] Why do...Ch. 15 - Underpricing in Debt Offerings [LO2] Why is...Ch. 15 - Prob. 5CRCT Ch. 15 - Prob. 6CRCT Ch. 15 - Prob. 7CRCT Ch. 15 - Prob. 8CRCT Ch. 15 - Prob. 9CRCT Ch. 15 - Prob. 10CRCT Ch. 15 - Prob. 1QP Ch. 15 - Prob. 2QP Ch. 15 - Rights [LO4] Red Shoe Co. has concluded that...Ch. 15 - Prob. 4QP Ch. 15 - Calculating Flotation Costs [LO3] The Valhalla...Ch. 15 - Prob. 6QP Ch. 15 - Prob. 7QP Ch. 15 - Prob. 8QP Ch. 15 - Dilution [LO3] Eaton, Inc., wishes to expand its...Ch. 15 - Prob. 10QP Ch. 15 - Dilution [LO3] In the previous problem, what would...Ch. 15 - Prob. 12QP Ch. 15 - Value of a Right [LO4] Show that the value of a...Ch. 15 - Prob. 14QP Ch. 15 - Prob. 15QP Ch. 15 - Prob. 1M Ch. 15 - Prob. 2M Ch. 15 - Prob. 3M Ch. 15 - Prob. 4M

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