32 Value of Right Show that the value of a right can be written as Value of...

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32 Value of Right Show that the value of a right can be written as Value of a right = P RO  −  P X = ( P RO  −  P S )/ (N + 1)

where PRO, PS and PX stand for the ‘rights-on’ price, the subscription price and the ex-rights price, respectively, and N is the number of rights needed to buy one new share at the subscription price.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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Question Posted: Jul 19, 2024 06:02 PM

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32 Value of Right Show that the value of a right can be written as Value of...

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Corporate Finance

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