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A company with 40 million shares in issue announces a 2 for 5 rights issue at a price of GH6 per share. The market price

A company with 40 million shares in issue announces a 2 for 5 rights issue at a price of GH6 per share. The market price of the existing shares before the rights issue is GH7.40. Required: i. What is the theoretical ex-right price? (3 marks) ii. What is the theoretical value of the rights? (3 marks)

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