What is theoretical value of the stock ex-right

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A Company’s common is selling for $60 per share. It needs $210 million for an expansion project and the IBs suggests the funds could be raised through a right offering. The subscription price is set $42. there are 50 million shares outstanding

a. What is the theoretical value of the stock ex-right?

b. What is the value of one right?

c. If you didn't have the funds to take advantage of the right offering or if you have less than the number of rights required to buy one new share, what course of action (s) would you take?

Reference no: EM131990432

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