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You own 500 shares of common stock in a firm that has two million shares outstanding. The firm announces a plan to sell an additional
You own 500 shares of common stock in a firm that has two million shares outstanding. The firm announces a plan to sell an additional 500,000 shares through a rights offering. 1. How many rights to purchase new shares will you receive? 2. Suppose that the market price per share is $30, but each right allows you to purchase a share of stock for $27. What should be the value of one right? 3. If you sold your rights, how much money should you make
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