PELLYKW6A5Problems2

PELLYKW6A5Problems2 - a. b. c. d. e. $47,220,000.00 5.625...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
a. $47,220,000.00 b. 5.625 c. $89.09 d. $0.91 e. A rights offering usually costs less, it protects the proportionate interests of existing shareholders and also protects against underpricing
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
812903.23
Background image of page 2
For $80: [5 (80) + 80] / 6 = 80 The alternating offering price would have no affect on the existing price per share. For $75: [5 (80) + 75] / 6 = 79.17 = 80 - 79.17 = 0.83 The alternating offering price causes a drop of 0.83 on the existing price per share.
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

PELLYKW6A5Problems2 - a. b. c. d. e. $47,220,000.00 5.625...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online