Question: Hi, I will rate the question! Please leave an answer. Thanks! Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that

Hi, I will rate the question! Please leave an answer. Thanks!

Hi, I will rate the question! Please leave an answer. Thanks! Knight

Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take three rights to buy a new share in the offering at a subscription price of $55. At the close of business the day before the ex-rights day, the company's stock sells for $90 per share. The next morning, you notice that the stock sells for $70 per share and the rights sell for $3 each. What is the value of the stock ex-rights? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock ex-rights What is the value of a right? Value of a right $ Are the rights underpriced or overpriced? Underpriced What is the amount of immediate profit you can make on ex-rights day per share? Immediate profit $

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