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A firm wishes raise $5,000,000 in new equity through a rights offering. Prior to the offering there are 1,000,000 shares outstanding which have a current
A firm wishes raise $5,000,000 in new equity through a rights offering. Prior to the offering there are 1,000,000 shares outstanding which have a current market value of $25 per share. The firm has decided to price the new shares at $20. What is the value of each right after the firm's offer is made?
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