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Disaster Cleanup Stock Sells for $29 a Share

Question 68

Multiple Choice

Disaster Cleanup stock sells for $29 a share.The firm has a rights offer outstanding for new equity shares.Antonio currently owns 400 shares.He just received one right for every share he owns.To purchase one new share he must submit five rights and $22.What is the value of one right?


A) $1.17
B) $1.33
C) $) 91
D) $) 84
E) $1.09

Correct Answer:

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