Question: Solve the question using and easy to understand approach all institutional investor 57 A company makes a 1 for 5 rights issue at a price

Solve the question using and easy to understand approach

all institutional investor 57 A company makes a 1 for 5 rights issue at a price of $3.50. The cum-rights price is $5. What is the theoretical ex-rights price? A $3.75 B $4.25 C $4.70 D $4.75

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