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The current market price of a company's shares is $10. The company is planning to make a 1 for 10 rights issue at a subscription

The current market price of a company's shares is $10. The company is planning to make a 1 for 10 rights issue at a subscription price of $8. You hold 50 shares at the time the rights issue is to be made. If you exercise your rights, what is the total number of shares you will now own?

55

500

51

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Question

The current market price of a company's shares is $10. The company is planning to make a 1 for 10 rights issue at a subscription

The current market price of a company's shares is $10. The company is planning to make a 1 for 10 rights issue at a subscription price of $8. You hold 50 shares at the time the rights issue is to be made. If you exercise your rights, what is the total number of shares you will now own? 55 500 51

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Fundamentals of Corporate Finance

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The current market price of a company's shares is $10. The company is planning to make a 1 for 10 rights issue at a subscription price of $8. You hold 50 shares at the time the rights issue is to be made. If you exercise your rights, what is the total number of shares you will now own?

55

500

51