Question
Boles Bottling Co. has issued rights to its shareholders. The subscription price is $44 and eight rights are needed along with the subscription price to
| Boles Bottling Co. has issued rights to its shareholders. The subscription price is $44 and eight rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $53 rights-on. |
| a. | What would be the value of one right? (Do not round intermediate calculations and round your answer to 2 decimal places.) |
| Value of one right ___________ | $ |
| b. | If the stock goes ex-rights, what would the new stock price be? (Do not round intermediate calculations and round your answer to 2 decimal places.) |
| New stock price ________ | $ |
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World Finance Since 1914
Authors: Paul Einzig
1st Edition
0415539471, 978-0415539470
