Redirect Energy Corporation has issued rights to its shareholders. The subscription price is $25, and four rights

Question:

Redirect Energy Corporation has issued rights to its shareholders. The subscription price is $25, and four rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $30 rights-on.
a. What would be the value of one right?
b. If the stock goes ex-rights, what would the new stock price be?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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