Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of stock they own. The new shares in this offering are priced at $21 plus 3 rights. The current market price of the stock is $23 a share. What is the value of one right?
A) $0.25
B) $0.50
C) $1.00
D) $1.50
E) $2.00
Correct Answer:
Verified
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