Berczy Inc. is proposing a rights offering. Presently there are 500,000 shares outstanding at $56 each. There will be 100,000 new shares offered at $48 each.
a. What is the new market value of the company?
New market value $
b.
How many rights are associated with one of the new shares?
Number of rights needed
c. What is the ex-rights price? (Round your answer to 2 decimal places. (e.g., 32.16))
Ex-rights price $
d. What is the value of a right? (Round your answer to 2 decimal places. (e.g., 32.16))
Value of a right $