What is the ex-rights stock price? what is the price of one, Ask an Expert

Finance

A company's stock currently sells for $63 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $12 and three rights.

a. What is the ex-rights stock price?

b. What is the price of one right?

c. When will the price drop occur?

d. Why will it occur then?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M952053

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