What is the expected stock price after the rights are issued

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Question - In 2010, Pandora, Inc., makes a rights issue at a subscription price of $4 a share. One new share can be purchased for every four shares held. Before the issue there were 12 million shares outstanding, and the share price was $6.

a. What is the total amount of new money raised?

b. What is the expected stock price after the rights are issued?

Reference no: EM133024030

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