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Nancy owns 25,000 shares of common stock in a firm with 41 million total shares outstanding. The firm announces a plan to sell an additional
Nancy owns 25,000 shares of common stock in a firm with 41 million total shares outstanding. The firm announces a plan to sell an additional 1 million shares through a rights offering. The market value of the stock is $54 before the rights offering and the new shares are being offered to existing shareholders at a $2 discount. What is the market value of the stock after the rights offering?
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