Question: Please show step by steps clearly and formulas used. Mountain Products has decided to raise $6 million via a rights offering. The company will issue

Please show step by steps clearly and formulas used. Mountain Products

Please show step by steps clearly and formulas used.

Mountain Products has decided to raise $6 million via a rights offering. The company will issue one right for each share of stock outstanding. The subscription price is set at $20 per share. The current market price of the stock is $25.20 and there are 1,500,000 shares currently outstanding. What is the value of one right? Multiple Choice O O $.97 O $.87 O $.76 O $.52 O $1.04 $1.04

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