Valuing a right Knight inventory Systems, Inc., has announced a rights offer. The company has announced that it will take four rights to buy a new share in the offering at a subscription price of $40. At the close of business the day before the ex-rights day, the company’s stock sells for $80 per share. The next morning, you notice that the stock sells for $72 per share and the rights sell for $6 each. Are the stock and the ex-rights correctly priced to create an immediate profit?