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The Wordsmith Corporation has 40,000 shares outstanding With a market price of $25 each. The firms expects to raise $200,000 Via a rights offering at

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The Wordsmith Corporation has 40,000 shares outstanding With a market price of $25 each. The firms expects to raise $200,000 Via a rights offering at a subscription price of $20. How many rights must be submitted to acquire one new share? A. .20 B. .80 C. 5.00 D. 1.25 E. 4.00

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