Question: Problem 1. Happy Monkey Inc. (HMI) has announced a rights offer to raise 20 million in order to develop a new stuffed toy. HMI's stock

Problem 1. Happy Monkey Inc. (HMI) has announced a rights offer to raise 20 million in order to develop a new stuffed toy. HMI's stock currently sells for $50 per share and there are 5.312500 shares outstanding. The subscription price has been set at $32 per share. What is the ex-rights price ?

a ) $33.89

b ) $48.11

c ) $48.74

d ) $51.26

e ) none of the above

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