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a. Explain the reasons for the stock price behavior on the announcement of a Seasoned Equity Offering (SEO). b. Mercer Corporation is attempting to raise

a. Explain the reasons for the stock price behavior on the announcement of a Seasoned Equity Offering (SEO).

b. Mercer Corporation is attempting to raise $7,800,000 in new equity with a rights offering. The subscription price will be $43.5 per share. The stock currently sells for $48 per share and there are 250,000 shares outstanding. What is the value of a right?

c. Why does the lessor often have higher tax rate than the lessee?

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