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A firm decides to raise $1 million with a rights issue. Each existing shareholder purchases one new share for each four that they currently hold,
A firm decides to raise $1 million with a rights issue. Each existing shareholder purchases one new share for each four that they currently hold, with 50,000 shares to be issued. The issue will be based on a subscription price of $20. Assuming that the current share market price is $35, calculate the ex-rights price of the company stock.
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