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Mountain Products has decided to raise $6 million via a rights offering. The company will issue one right for each share of stock outstanding. The

Mountain Products has decided to raise $6 million via a rights offering. The company will issue one right for each share of stock outstanding. The subscription price is set at $20 per share. The current market price of the stock is $25.20 and there are 1,500,000 shares currently outstanding. What is the value of one right?

A.

$1.04
B.

$0.76
C.

$0.52
D.

$0.87

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