Assuming that the new money is invested to earn fair return

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Reference no: EM131457745

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 180,000 shares priced at $40 a share. Assuming that the new money is invested to earn a fair return, give values for the following:

a. Number of new shares.

Number of new shares

b. Amount of new investment.

New investment $

c. Total value of company after issue.

Value of company $

d. Total number of shares after issue.

Total number of shares

e. Share price after the issue.

Share price after issue $

Reference no: EM131457745

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