PRIN.OF CORP.FINANCE-CONNECT ACCESS
13th Edition
ISBN: 2810023360757
Author: BREALEY
Publisher: MCG
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Chapter 15, Problem 23PS
Rights issues In 2012, the Pandora Box Company made a rights issue at €5 a share of one new share for every four shares held. Before the issue there were 10 million shares outstanding and the share price was €6.
- a. What was the total amount of new money raised?
- b. The rights issue gave the shareholder the opportunity to buy one new share for less than the market price. What was the value of this opportunity?
- c. What was the prospective stock price after the issue?
- d. How far could the total value of the company fall before shareholders would be unwilling to take up their rights?
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Chapter 15 Solutions
PRIN.OF CORP.FINANCE-CONNECT ACCESS
Ch. 15 - Vocabulary Each of the following terms is...Ch. 15 - Prob. 2PSCh. 15 - Vocabulary Here is a further vocabulary quiz....Ch. 15 - Stock issues True or false? a. Venture capitalists...Ch. 15 - Prob. 5PSCh. 15 - Prob. 6PSCh. 15 - Prob. 7PSCh. 15 - Venture capital Complete the passage using the...Ch. 15 - Venture capital a. A signal is credible only if it...Ch. 15 - IPOs Refer to Section 15.1 and the Marvin...
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