Reference no: EM131750145
Question: Successful Enterprises currently has 15,000,000 common shares outstanding that trade at $12 per share. $ 1 8,000,000 of new equity capital is to be raised through a rights offering. Management has been debating whether to set the subscription price for the new shares at $11, $10 or $9 per share.
(a) For each alternative, compute the number of additional shares to be issued, the number of rights required for subscription to one new share, the minimum value of a right, and the market price per share ex rights.
(b) If, after the offering, total after-tax earnings for the coming year are expected to be $20,000,000, and dividends of $0.72 per share are to be maintained, compute the impact of various subscription prices on earnings per share and on total cash needed to pay dividends.
(c) What are the practical trade-offs in setting the subscription price?
|
Present a rebranding strategy for the product
: Identify one current struggling consumer product. In a paper of 700 words, present a rebranding strategy for the product.
|
|
Develop three to four-page analysis on the projected return
: Develop a three to four-page analysis on the projected return on investment for your college education and projected future employment
|
|
Discuss enjoy the benefits of benchmarking
: Suppose you were a manager for Delta Airlines. Your company wishes to enjoy the benefits of benchmarking
|
|
Select an industry or firm
: Select an industry or firm. State its market structure (pure competition, monopoly, monopolistic, or oligopoly). Next, please define the characteristics
|
|
Compute the impact of various subscription prices
: If, after the offering, total after-tax earnings for the coming year are expected to be $20,000,000, and dividends of $0.72 per share are to be maintained.
|
|
Computes a minimum-weight spanning tree
: our program for Assignment #2 computes a minimum-weight spanning tree (MST) for these n points. By executing the following command,
|
|
Explain in detail the meaning of substitute goods
: Assume that Big Mac hamburgers and Whopper hamburgers are substitutes for each other. If the price of only Big Macs drops, what will likely happen.
|
|
Compute the roi of the teen division
: Compute the ROI of the Teen division if the embroidery machine is purchased
|
|
Calculate the percentage change in the warrants floor value
: Calculate the percentage change in the warrants' floor value for a ± 1 5-percent change in the market price of the shares.
|