If the old stock price is $50/share and ex-rights price is $49/share then the value of a right is:
A) $50/right
B) $49/right
C) $1/right
D) Cannot be determined

Name: If the old stock price is $50/share and ex-rights price is $49/share then the value of a right is: A) $50/right B) $49/right C) $1/right D) Cannot be determined
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Question

Quizplus · Accepted Answer

Ex-rights price = old stock price - value of a right
$49/share = $50/share - value of a right
Value of a right = $50/share - $49/share
Value of a right = $1/share or $1/right

If the Old Stock Price Is $50/share and Ex-Rights Price