(Solution) 19) Mr. And Mrs. Anderson Own Three Shares Of Magic Tricks Corporation's Common Stock. The Market Value Of The Stock Is $60. The Andersons Also Have... | Snapessays.com


(Solution) 19) Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have...


19) Mr. and Mrs. Anderson own three shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersons also have $48 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $48 for each three shares currently owned (based on three rights).   (Do not round intermediate calculations and round your answers to the nearest whole dollar.)  a. What is the value of a right?    Value per right $     b. What is the value of the Andersons’ portfolio before the rights offering? (Portfolio in this question represents stock plus cash.)    Portfolio value $     c-1. Compute the diluted value (ex-rights) per share.    Diluted value $     c-2. If the Andersons participate in the rights offering, what will be the value of their portfolio, based on the diluted value (ex-rights) of the stock?    Portfolio value $     d.  If they sell their rights but keep their stock at its diluted value and hold on to their cash, what will be the value of their portfolio?    Portfolio value $

 


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This question was answered on: May 23, 2022

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