Hickock, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $58 each....

Hickock, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $58 each. There will be 80,000 new shares offered at $50 each.

a. What is the new market value of the company? (Do not round intermediate calculations.) New market value $ __________

b. How many rights are associated with one of the new shares? (Do not round intermediate calculations.) Number of rights needed _____

c. What is the ex-rights price? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Ex-rights price $ ______

d. What is the value of a right? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Value of a right $ _____

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 11 months ago

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Hickock, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $58 each....

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