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The Apple Inc. has announced a rights offer to raise $10 million for a new Phone. For this phone, potential resellers need to pay $5,000
The Apple Inc. has announced a rights offer to raise $10 million for a new Phone. For this phone, potential resellers need to pay $5,000 per phone in advance. The stock currently sells for $30 per share and there are 2 million shares outstanding. (1). What is the maximum possible subscription price? What is the minimum? (2) What is the ex-rights price? (3) If the subscription price is set at $27 per share, how many shares must be sold? How many rights will it take to buy one share?
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