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A companys stock currently sells for $87 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a
| A companys stock currently sells for $87 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $28 and 3 rights. |
| a. | What is the ex-rights stock price?(Do not round intermediate calculations and round your final 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 final answer to 2 decimal places (e.g., 32.16).) |
| Value of one right | $ |
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New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
