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Skyway Airlines has announced a rights offering for its shareholders. Harold Post owns 1,900 shares of Skyway Airlines stock. Four rights plus $59 cash are
Skyway Airlines has announced a rights offering for its shareholders. Harold Post owns 1,900 shares of Skyway Airlines stock. Four rights plus $59 cash are needed to buy one of the new shares. The stock is currently selling for $77 rights-on.
a. What is the value of a right? (Round the final answer to 2 decimal places.) Value per right $
b-1. How many of the new shares could Harold buy if he exercised all his rights? Number of shares
b-2. How much cash would this require? Cash required
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