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Suppose that the company was also considering structuring the rights issue to allow for an additional share to be purchased for 1 0 rights at

Suppose that the company was also considering structuring the rights issue to allow for an additional share to be purchased for 10 rights at a subscription price of $3. Prove that a stockholder with 100 shares would be indifferent between
purchasing a new share for 10 rights at $3 or purchasing a new share for 20 rights at $6.
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