Question
Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take three rights to buy a new share in
Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take three rights to buy a new share in the offering at a subscription price of $50. At the close of business the day before the ex-rights day, the companys stock sells for $90 per share. The next morning, you notice that the stock sells for $65 per share and the rights sell for $3 each.
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