Explore BrainMass
Share

Explore BrainMass

    New Market Value of a Firm

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Claires, Inc. is proposing a rights offering. There are 100,000 shares outstanding, trading at $24 each. There will be 10,000 new shares issued at a $22 subscription price. What is the new market value of the firm?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:31 am ad1c9bdddf
    https://brainmass.com/business/valuing-securities/new-market-value-firm-584573

    Solution Summary

    This solution provides a sample calculation of new market value of a firm after a rights offering

    $2.19