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2 . Nova Inc. is considering a rights offering to finance a project that costs $ 4 0 million. The current price of the firm

2 .

Nova Inc. is considering a rights offering to finance a project that costs $

40

million. The

current price of the firm

s common stock is $

90 .

The firm has decided that the ex

-

rights price

should be $

85 .

Currently there are

22

million common shares outstanding. What is the

subscription price of the rights offering?

(7

points

)

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