Question
Disaster Cleanup stock sells for $29 a share. The firm has a rights offer outstanding for new equity shares. Antonio currently owns 400 shares. He
Disaster Cleanup stock sells for $29 a share. The firm has a rights offer outstanding for new equity shares. Antonio currently owns 400 shares. He just received one right for every share he owns. To purchase one new share he must submit five rights and $22. What is the value of one right?
Multiple Choice
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$1.17
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$1.33
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$.91
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$.84
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$1.09
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The Oxford Handbook Of IPOs
Authors: Douglas Cumming, Sofia Johan
1st Edition
0190614579, 978-0190614577
