How much money can you get by selling your rights

Assignment Help Financial Management

Reference no: EM131352421

Wuttke Corp. wants to raise $4.3 million via a rights offering. The company currently has 530,000 shares of common stock outstanding that sell for $55 per share. Its underwriter has set a subscription price of $30 per share and will charge the company a spread of 6 percent.

If you currently own 6,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Sale proceeds:

Reference no: EM131352421

Questions Cloud

Generations of lizards-short legs or long legs : Review the data that was collected concerning the distance traveled by individuals categorized by short or long legs. Which trait may have the greatest chance of being passed down to future generations of lizards-short legs or long legs?

Compute value of this stock with required return : A firm is expected to pay a dividend of $2.25 next year and $2.55 the following year. Financial analysts believe the stock will be at their price target of $100 in two years. Compute the value of this stock with a required return of 11.2 percent.

Discuss an everyday application of the scientific method : Discuss An Everyday Application of the Scientific Method Science is a systematic method of learning about the universe that relies on logic and revolves around the notion of cause and effect. There is a great deal of variation in the specific tech..

Describe how the agencies you chose are alike : Choose two homeland security agencies at the federal, state, or local level to compare and contrast. Describe how the agencies you chose are alike, how they are different, and areas for improvement.

How much money can you get by selling your rights : Wuttke Corp. wants to raise $4.3 million via a rights offering. The company currently has 530,000 shares of common stock outstanding that sell for $55 per share. Its underwriter has set a subscription price of $30 per share and will charge the compan..

Find the flow deflection angle a : An air flow with a Mach number of 8 is deflected by a wedge through an angle α. What is the maximum value of α for an attached oblique shock?

Compute value of this stock with required return : A firm is expected to pay a dividend of $2.85 next year and $3.00 the following year. Financial analysts believe the stock will be at their price target of $55 in two years. Compute the value of this stock with a required return of 12.8 percent.

Identify the independent and dependent variables : Create a research question related to nursing. Identify the independent and dependent variables. Next, create a hypothesis or set of hypotheses to go along with your research question. Identify your hypothesis as one of each of the four categories..

Which qualitative approach you would recommending using : When considering using qualitative approaches for evaluating GAL situations, explain which qualitative approach you would recommending using and why.

User Account

All Pages