anding a right s Suppose you own a 1000 shares in a company that has 1 million shares outs Suppose the company decides to issue 500,000 new shares at $36 throg s offering. Every old share will be given 0.5 rights thus one right can be exch for 1 8 sshare of new stock in addition to a price of $36 per share. $36 +1 right Price of the stock after the issue. PO $40 MVO- 40x1,000,000-40,000,000 MV1-40 1,000,000+36x500,000-58,000,000 C P1-58,000,000/1,500,000 38.66 7 explain1 right 38.667-36-2.667 they cou Thank m ntIf you own 2 old stocks you can get 1 right to buy one new stock at $36 2 We also state this as PO P1 + 0.5xright > every old stock carries half a right $40-38.667 - 0.5 right Right-1.33 2-2.667 6 Your 1,000 shares are worth $40,000 before and $38,667 500 rights which is also $40,000 As 500*2.667-$1,333.5