Use the following information to answer the next 2 questions. Jumanji Corp. has decided to do a rights offering. It will issue 1 right for each share. The company currently has
20,000,000
shares outstanding, therefore
20,000,000
rights will be issued. The stock price today is
$45
per share. The company wishes to raise
$300,000,000
. It has set the subscription price at
$28
per share. Question 21: What will be the ex-rights price? a)
$39.07
b)
$36.45
c)
$34.33
d)
$35.19
e)
$37.56
Question 22: What will be the value of one right? a)
$5.56
b)
$11.34
c)
$5.93
d)
$3.43
e)
$4.41
Question 23: ABC Corp. issues 5.074 million shares at a price of
$12.06
per share. If the underwriter charges
5%
of the gross proceeds as a fee, how much money was raised in the sale? a)
$34.88
million b)
$58.13
million c)
$23.25
million d)
$37.5
million e)
$25
million