What is the issue price of western airline

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Reference no: EM132413538

Western Airline has decided to raise $5M in new equity by means of a rights offering. They have decided to issue 50,000 new shares. The stock currently sells for a rights-on price of $150 per share. If the ex-rights price is expected to be $133.33 per share, answer the following questions assuming all the rights are exercised unless otherwise stated.

(a) What is the issue price?

(b) How many shares are currently outstanding (before the rights issue)?

Reference no: EM132413538

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