7) Discovery Cafe (DVC) has 7,800,000 shares issued and outstanding and is trading at $130.50...
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7) Discovery Cafe (DVC) has 7,800,000 shares issued and outstanding and is trading at $130.50 per share. The company issues 2,600,000 new shares with a subscription price of $87.00. Under the terms of the offering, 3 rights are required to subscribe to one new share at the subscription price, and each shareholder is issued one right for each share owned. 14 57 If all the shares offered are taken up then Discovery Cafe (DVC) will raise Hours Minutes Seconds and, after the capital infusion, the market capitalization of the company will be After the new shares are issued the market price should be The fair market value of the right should thus be
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