Homework Answers
| a) New market value = 800,000($58) + 80,000($50) | $50,400,000.00 | |
| b) Number of rights needed = 800,000 old shares/80,000 new shares | 10 | rights per new share |
| c) Ex right Price = $50,400,000/880,000 | $57.27 | |
| d) Value of a right = $58 - $57.27 | $0.73 |
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