Value of Right Show that the value of a right can be written as Value of a
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Value of Right Show that the value of a right can be written as Value of a right PRO PX (PRO PS)/(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.
LO.1
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