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Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s market value of equity...

Cye, Inc., has 110,000 shares of stock outstanding. Each share is worth $41, so the company’s market value of equity is $4,510,000. Suppose the firm issues 19,000 new shares at the following prices: $41, $38, and $33.

What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0". Round your answers to 2 decimal places, e.g., 32.16.)

Price Ex-Rights Effect Amount
a. $41 $    (Click to select)Price drops byNo changePrice raises by $ per share
b. $38 $    (Click to select)Price drops byNo changePrice raises by $ per share
c. $33 $    (Click to select)Price raises byPrice drops byNo change $ per share
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Computation of Ex-rights price and change in price at different offering prices: Rights Price Particulars S41 S38 S33 aNumberFinal answer: Price Ex-rights Effect Amount a $41 S41 No change SOper Share b $38 $40.56 Price Drops by S0.44 per Share c $33

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