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The current market price of a company's shares is $20. The company is planning to make a 1 for 5 rights issue at a subscription
The current market price of a company's shares is $20. The company is planning to make a 1 for 5 rights issue at a subscription price of $14. You hold 100 shares at the time the rights issue is to be made. What will the ex-rights share price be?
a. $16.67
b. $14.33
c. $19.00
d.$22.80
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