Question
Francis is the founder of Test Corporation. A company that specializes in monitoring wells for harmful contaminates. Demand for their services has been increasing and
Francis is the founder of Test Corporation. A company that specializes in monitoring wells for harmful contaminates. Demand for their services has been increasing and they would like to raise equity funding through a rights issue. Currently there are 1.5 million shares outstanding. Find the value of a Test Right if shareholders require 4 rights and $24 to purchase a new share and shares are trading ex-rights at a price of $30?
I need the solution and the answer of this question. I am in a hurry, so quick response will be appreciated. Thank you!
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