What would be the value of one right

Assignment Help Finance Basics

Reference no: EM13288752

Prime Bankcorp has issued rights to its shareholders. The subscription price is $50 and five rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $59 rights-on.

A. What would be the value of one right?
B. If the stock goes up ex-rights, what would be the new stock price be?

Reference no: EM13288752

Questions Cloud

What will be the new stock price of plebane : Assuming that the market reacts rationally, what will be the new stock price of Plebane, Incorporated after the announcement?

How fast does the airplane move : An airplane moves at 120 m/sec to the west with respect to the air. How fast does the airplane move

Which projects should be undertaken : Compare the internal rate of return for both projects. Compute the NPV for both projects, using a cost of capital of 10 percent.

By how much did the companies retained earnings increase : Polycom Systems earned $480 million last year and paid out 20% of earnings in dividends.

What would be the value of one right : Prime Bankcorp has issued rights to its shareholders. The subscription price is $50 and five rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $59 rights-on.

Define what is the partial pressure of nitrogen : The mole fraction of nitrogen in a air is 0.78. If the total barometric pressure is 760 torr, what is the partial pressure of nitrogen

How many shares or proxies are needed to elect : Under cumulative voting procedures, how many directors can the dissident stockholders elect with the proxies they now hold? How many directors could they elect under majority rule with these proxies?

Find the speed of the box as it reaches the end of the board : A box of books is initially at rest a distance D = 0.515 m from the end of a wooden board. Find the speed of the box as it reaches the end of the board

What kind of intervention that country central bank be force : what kind of intervention would that country's central bank be forced to undertake, and what effect would it have on it's international reserves and the money supply?

User Account

All Pages