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XYZ Corporation needs to raise additional capital and is considering a rights issue to raise $2 million. There are currently 1,080,000 shares on issue, trading

XYZ Corporation needs to raise additional capital and is considering a rights issue to raise $2 million. There are currently 1,080,000 shares on issue, trading at $15.68. The company plans to increase the total number of shares on issue to 1,400,000. Calculate the theoretical ex-rights price and the value of a right.

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