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Ostreichs stock is currently selling at $28 per share. There are 1 million shares outstanding. The firm is planning to raise $4.2 million to finance
Ostreichs stock is currently selling at $28 per share. There are 1 million shares outstanding. The firm is planning to raise $4.2 million to finance a new project. What is the appropriate subscription price, the exrights stock price and the value of a right under the following scenario: four shares of outstanding stock are entitled to purchase one additional share of the new issue?
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