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Question 4 (a) Suppose you invested $10,350 in Japfa's stock just before the market closed on the announcement date of the rights issue. Your
Question 4 (a) Suppose you invested $10,350 in Japfa's stock just before the market closed on the announcement date of the rights issue. Your friend says that markets are efficient and that you are protected even if you ignore the rights issue. Evaluate his proposed option relative to the options of buying the rights shares or trading the "nil-paid" rights, quantitatively if applicable. (20 marks)
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