QUESTION 3 (25 MARKS) (a) Win Corp. is proposing a rights offering. Presently there are...
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Finance
QUESTION 3 (25 MARKS)
(a) Win Corp. is proposing a rights offering. Presently there are 650,000 shares outstanding at RM21 each. There will 40,000 new shares offered at RM15 each. Calculate the following:
(i) New market value of the company. (3 marks)
(ii) Numbers of rights that associated with one new shares. (2 marks)
(iii) The ex-rights price. (2 marks) (iv) The value of a right. (2 marks)
\(v) Total flotation cost. Given the flotation cost is 7 percent. (4 marks)
(b) Elaborate any FOUR (4) defensive tactics used by firms to resist unfriendly attempts. (12 marks)
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