Prime bankcorp has issued rights to its shareholders the, Ask an Expert

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Prime Bankcorp has issued rights to its shareholders. The subscription price is $50 and five rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $59 rights-on.

A. What would be the value of one right?
B. If the stock goes up ex-rights, what would be the new stock price be?

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