5. A company stock currently sells for $45 per share. Last week, the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $10 and three rights.

What is the ex-rights stock price? Round to 2 decimal places.

Answer:

6. A company stock currently sells for $45 per share. Last week, the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $10 and three rights.

What is the price of one right?

Answer:

7. A company stock currently sells for $45 per share. Last week, the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $10 and three rights.

When will the price drop occur? 1. On the ex-rights date

2. On the date of the announcement

3. On the date of the paying the subscription price

4. On the date of expiration date