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A firm currently has 200,000 shares outstanding at a market price of $12.00 per share. The firm has chosen to raise $400,000 via a rights

A firm currently has 200,000 shares outstanding at a market price of $12.00 per share. The firm has chosen to raise $400,000 via a rights issue. The subscription price for the offering is $10.00 per share. What is the value of a right?

$0.33
$0.40
$1.67
$2.00
$3.00

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