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A companys stock currently sells for $55 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a
| A companys stock currently sells for $55 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $12 and 4 rights. |
| a. | What is the ex-rights stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | What is the price of one right? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Financial Accounting Information For Decisions
Authors: John J. Wild
10th Edition
9781260705584
