Calculate the ex-right stock price, Finance Basics

Assignment Help:

DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding.

 a. If DIY sets the subscription price to be $80 and one right will be issued for each outstanding share, calculate the ex-right stock price and the value of a right.

 b. Repeat part a if the subscription price is $10.

 c. If DIY wants the ex-right stock price to be $50, what must be the subscription price? 

 

 


Related Discussions:- Calculate the ex-right stock price

Assignment, Following details are related to three companies which are iden...

Following details are related to three companies which are identical except in terms of ''''r''''. Company ABC Ltd. MNC Ltd. XYZ Ltd. Cost of capital 10% 10% 10% Earn per Share Rs

Finance, Pls help with this + provide references > Briefly outline the mos...

Pls help with this + provide references > Briefly outline the most recent balance of payments experience for China and comment on whether the balance of payments situation will ha

Business activity cycle, Business Activity Cycle The interest rates al...

Business Activity Cycle The interest rates also depend on business cycles as above. Because the economy moves in the four (4) business cycles, such interest rates will shift l

Assets, thew amount of money investedin a retirement fund is an example of

thew amount of money investedin a retirement fund is an example of

Computation of payback period method, Computation of Payback Period Method ...

Computation of Payback Period Method 1. Under uniform annual incremental cash inflows - if the venture or an asset generates uniform cash inflows then the payback period (PB

Financial planning, Financial Planning A financial manager along with...

Financial Planning A financial manager along with present investment policies will be concerned along with how efficiently the company's funds are invested since it is from t

Dividend payout ratio, Dividend Payout Ratio Dividend payout ratio = (...

Dividend Payout Ratio Dividend payout ratio = (DPS/EPS) x 100                                     = Dividend paid/ Earning to ordinary shareholder This is the reci

THE CASE OF THE MISSING BONDS RATING, Three of these companies have bonds t...

Three of these companies have bonds that carry investment - grade ratings. The other 3 companies carry junk - bond ratings. Judging by the information in the table, which 3 compani

Challenges to finance manager., Ask question #Minimum what are the challeng...

Ask question #Minimum what are the challenges that a finance manager may face?

Discuss possible reasons for the merger , Investigate a recent company merg...

Investigate a recent company merger or take-over and: i)  Critically evaluate the means by which managers may determine the bid price in such acquisitions. (You should use the b

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd