How many rights will it take to purchase one share

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1. An investment of $83 generates after-tax cash flows of $38.00 in Year 1, $66.00 in Year 2, and $125.00 in Year 3. The required rate of return is 20 percent. The net present value is

2. A company wants to raise $2 million through a rights offering. The subscription price is $4, and the current stock price is $5. The firm currently has 1,000,000 shares outstanding. How many shares must be issued? How many rights will it take to purchase one share? What is the value of a right?

3. A company needs $50,000 for six months to complete a construction project. If a bank quotes a discount rate of 9.3%, how much will the company need to repay?

Reference no: EM131991118

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