Abc company is currently quoted at 53 on nasdaq a rights


ABC Company is currently quoted at 53 on NASDAQ. A Rights Offering has been declared with an exercise price of 48, and 4.92 rights are needed to buy a new share. If you own 10 round lots of this company, answer the following:

1. What is the value of a right - - Rights-On?

2. What is the price of the stock ex-rights?

3. How many new shares can you buy with the rights you get?

4. What action do you take to get the new shares?

5. Show what would happen to the price of the stock after ex-rights date and subsequent.

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Financial Management: Abc company is currently quoted at 53 on nasdaq a rights
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