QUESTION ONE (15 Points) (a) MADA Company has 100,000 shares of stocks outstanding. Each share...
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QUESTION ONE (15 Points) (a) MADA Company has 100,000 shares of stocks outstanding. Each share is worth $80, so the company's market value of equity is $8,000,000. Suppose the firm issues 20,000 new shares at $65. What is the number of rights needed per share? (1) What is the offer price on the existing price share? (2.50 Points) (2) Do you think the price increased or dropped per share and by how much? (2.50 Points)
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