Rights. Problem 15 contains details of a rights offering by Pandora. Suppose that the com- pany had decided to issue the new stock at $4 instead of $5 a share. How many new shares would it have needed...

Rights.



Problem 15 contains details of a rights offering by Pandora. Suppose that the com- pany had decided to issue the new stock at $4 instead of $5 a share. How many new shares would it have needed to raise the same sum of money? Recalculate the answers to problem

15. Show that Pandora’s shareholders are just as well off if it issues the shares at $4 a share rather than the $5 assumed in problem 15.