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T Ltd has 25 million ordinary shares of $0.5 per share. These shares are currently valued on NASDAQ at $3.70 per share. The directors have

T Ltd has 25 million ordinary shares of $0.5 per share. These shares are currently valued on NASDAQ at $3.70 per share. The directors have decided to make a one-for-three issue at $3.40 per share.

Required: Calculate

(1) the theoretical ex-rights price, and

(2) the value per share of the rights offer.

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