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You own 100,000 shares of common stock in a firm that has 4 million shares outstanding. The firm announces a plan to sell an additional
You own 100,000 shares of common stock in a firm that has 4 million shares outstanding. The firm announces a plan to sell an additional 1,000,000 shares through a rights offering. Suppose that the market price per share is $50, but each right allows you to purchase a share of stock for $45. What should be the minimum value of one right?
A. | $5.00 | |
B. | $4.50 | |
C. | $6.13 | |
D. | $45.00 | |
E. | $4.00 |
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