The stock of Byron Enterprises is currently selling for $48 a share. The company has decided to raise funds through a rights offering wherein every shareholder will receive one right for every share of stock they own. The new shares being offered are priced at $42 plus five rights. What is the value of one right?
A) $0.20
B) $0.50
C) $1.00
D) $5.00
E) $6.00
Correct Answer:
Verified
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