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(a) ABC stock price is $5. Briefly discuss why the price of the new right shares are unlikely to be priced at $4.70. (b) Briefly

(a) ABC stock price is $5. Briefly discuss why the price of the new right shares are unlikely to be priced at $4.70.

(b) Briefly discuss one advantage of a value-weighted stock index compared to a price-weighted stock index.

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