Tuv guy inc is proposing a rights offering there are


TUV Guy Inc. is proposing a rights offering. There are currently 240,000 shares outstanding at $80 each. There will be 60,000 new shares offered at $60 each.

a) What is the new market value of the company?

b) How many rights are associated with one of the new shares?

c) What is the value of a right?

d) What is the ex-rights price per share?

 

e) Why might a company have a rights offering rather than general cash offer?

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Financial Management: Tuv guy inc is proposing a rights offering there are
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