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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 firms 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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