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ABC's current share price (cum rights) is $7 per share. It announces a three for seven rights issue with a subscription price of $3 per

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ABC's current share price (cum rights) is $7 per share. It announces a three for seven rights issue with a subscription price of $3 per share. The share price on the ex-rights date will always decrease to the theoretical ex-rights price of $4.00. True/False

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