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ame a. ABC Corp. wants to raise $5 million through a rights issue. The company currently has 2 million outstanding shares and the share price

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ame a. ABC Corp. wants to raise $5 million through a rights issue. The company currently has 2 million outstanding shares and the share price is $3. The company wants to offer new shares at $2.50 to make the issue attractive to investors. Assume all rights will be exercised and there is no other event that affects share price. What is the value of each right? m

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