Summit Health Care is sponsoring a rights offering wherein every shareholder will receive one right for each share of stock they own. The new shares in this offering are priced at $42 plus 8 rights. The current market price of Summit stock is $48 a share. What is the value of one right?
A) $.50
B) $.58
C) $.63
D) $.67
E) $.75
Correct Answer:
Verified
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