Question
A companys stock currently sells for $73 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a
| A companys stock currently sells for $73 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $21 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.) |
| Stock price |
| 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.) |
| Value of right:
*ALL THESE ARE IN ONE QUESTION * |
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Analysis For Financial Management
Authors: Robert C Higgins
8th International Edition
0071257063, 9780071257060
