A company with 7,000,000 shares outstanding that sell for $70 each has announced a rights offer to

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A company with 7,000,000 shares outstanding that sell for $70 each has announced a rights offer to raise $4,000,000. If it will take 4 rights to buy 1 share at the subscription price of $55 via the rights offering.

What is the ex-rights price per share?

Related Book For answer-question

Corporate Finance

ISBN: 978-1259918940

12th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Posted Date: Apr 10, 2023 02:02 AM

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A company with 7,000,000 shares outstanding that sell for $70 each has announced a rights offer to

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To find the exrights price per share we need to adjust the current share price to reflect the diluti... View the full answer

Corporate Finance

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