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What is the total amount of new money raised

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Reference no: EM132559333

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 8 million shares outstanding, and the share price was $5.5.

Question 1: What is the total amount of new money raised? (Round your answer to 2 decimal places.)

Question 2: What is the expected stock price after the rights are issued? (Round your answer to the nearest cent.)

Reference no: EM132559333

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