Answered step by step
Verified Expert Solution
Question
1 Approved Answer
night Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take four rights to buy a new share in
night Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take four rights to buy a new share in the offering at a subscription price of $25. At the close of business the day before the ex-rights day, the companys stock sells for $50 per share. The next morning, you notice that the stock sells for $42 per share and the rights sell for $2 each. |
What is the value of the stock ex-rights? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Stock ex-rights= 45.00 |
What is the value of a right? = $8.00 |
What is the amount of immediate profit you can make on ex-rights day per share????? I cant figure this one out. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started