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Suppose you own 1,000 shares of Edinburgh Exports Inc. You received an announcement on December 15 that stated Edinburgh Exports Inc. plans to sell an
Suppose you own 1,000 shares of Edinburgh Exports Inc. You received an announcement on December 15 that stated Edinburgh Exports Inc. plans to sell an additional 3 million shares of common stock through a rights offering to shareholders as of January 15. The current market price of the Edinburgh Exports Inc.'s shares is $44.80 per share, and as per the announcement of the offering, the subscription price of the rights is $39.20. As an active shareholder, you collect and calculate the following information to use in your analysis of the rights offering: Your review of your share transaction details reveals that you bought 800 shares of Edinburgh Exports Inc. on January 13 and 200 shares on January 15. Edinburgh Exports Inc. has 14 million shares of common stock outstanding
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