Associated breweries is planning to market unleaded beer

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Reference no: EM13890383

Associated Breweries is planning to market unleaded beer. To finance the venture, it proposes to make a rights issue with a subscription price of $10. One new share can be purchased for every two shares held. The company currently has outstanding 140,000 shares priced at $40 a share. Assuming that the new money is invested to earn a fair return, give values for the following:

number of new shares

amount of new investment

total value of co after issue

total number of shares after issue

share price after issue

Reference no: EM13890383

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