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[The following information relates to the next two questions.] 4 A company wants to raise $10 million through rights offering. The subscription price is $20,4
[The following information relates to the next two questions.] 4 A company wants to raise $10 million through rights offering. The subscription price is $20,4 and the current stock price is $25. The firm currently has 5,000,000 shares outstanding. 4 10. What is the expected stock price that prevails after the rights offering?- a. $20.00 c. $24.55 b. $22.34 d. $25.00 11. What is the value of a right?- a. $0.45 c. $1.00 b. $0.84 d. $1.25
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