Prime bankcorp has issued rights to its shareholders the


Question: 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 ex-rights, what would the new stock price be?

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Finance Basics: Prime bankcorp has issued rights to its shareholders the
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