1. A firm is thinking of a rights issue to raise 5 crore. It has 5 lakh...

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1. A firm is thinking of a rights issue to raise 5 crore. It has 5 lakh shares outstanding and the current market price of a share is 170. The subscription price on the new share will be *125 per share. (i) How many shares should be sold to raise the required funds? (ii) How many rights are needed to purchase one new share? (iii) What is the value of one right?

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