How many rights are associated with one of the new shares

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Hickock, Inc., is proposing a rights offering. Presently there are 350,000 shares outstanding at $64 each. There will be 50,000 new shares offered at $58 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 ex-rights price?

d) What is the value of a right?

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

Reference no: EM131047413

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