The management of LTTP Corp. is preparing for issuing equity to fund a new project. Rights offer is used. The company has determined that the ex-rights price would be $53. The current price is $58 per share, and there are 10 million shares outstanding. The rights offer would raise a total of $45 million. What is the subscription price? can you handwrite it please

The management of LTTP Corp. is preparing for issuing equity to fund a new project. Rights offer is used. The company has determined that the ex-rights price would be $53. The current price is $58 per share, and there are 10 million shares outstanding. The rights offer would raise a total of $45 million. What is the subscription price? can you handwrite it please

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 5P

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The management of LTTP Corp. is preparing for issuing equity to fund a new project. Rights offeris used. The company has determined that the ex-rights price would be $53. The current price is $58per share, and there are 10 million shares outstanding. The rights offer would raise a total of $45million. What is the subscription price?
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