Dunn resources has issued rights to its shareholders the


Question: Dunn Resources has issued rights to its shareholders. The subscription price is $60. Four rights are needed along with the subscription price of $60 to buy one new share. The stock is selling for $72 rights-on.

a. What is the value of one right?

b. After the stock goes ex-rights, what will the new stock price be?

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Finance Basics: Dunn resources has issued rights to its shareholders the
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