For a particular stock the old stock price is $20,the ex-rights price is $15,and the number of rights needed to buy a new share is 2. Assuming everything else constant,the subscription price is ______.

Question

Quizplus · Accepted Answer

The subscription price can be calculated using the formula: Subscription Price = (Old Stock Price - Ex-rights Price) * Number of Rights + Ex-rights Price. Substituting the given values: Subscription Price = ($20 - $15) * 2 + $15 = $5.

For a Particular Stock the Old Stock Price Is $20,the