The stock of Violets 4 U is currently selling for $46 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 $40 plus four rights. What is the value of one right?
A) $1.20
B) $1.50
C) $2.40
D) $3.60
E) $6.00
Correct Answer:
Verified
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