HungHom Inc. has 250,000 shares outstanding at $60 per share. For expansion of its overseas plant facilities, the company has decided to raise $5,000,000 by a rights offering with a subscription price of $50. 2-1. How many new shares are offered to raise the required funds? Answer: Number of new shares = ____________ 2-2. How many rights are needed to buy a new share via rights offering? Answer: Number of rights needed = _________rights per share 2-3. What will the price per share be if all rights are exercised? Use two decimal points rounded up (e.g., 79.54). Answer: Price per share = $_____________
HungHom Inc. has 250,000 shares outstanding at $60 per share. For expansion of its overseas plant facilities, the company has decided to raise $5,000,000 by a rights offering with a subscription price of $50.
2-1. How many new shares are offered to raise the required funds? Answer: Number of new shares = ____________
2-2. How many rights are needed to buy a new share via rights offering? Answer: Number of rights needed = _________rights per share
2-3. What will the price per share be if all rights are exercised? Use two decimal points rounded up (e.g., 79.54). Answer: Price per share = $_____________
2-4. Assuming everything else is constant, what is the value of the right? Use two decimal points rounded up (e.g., 79.54). Answer: Value of the right=_____________$
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