A company conducted a one-for-five renounceable rights issue at a subscription price of $35 when its cum-rights price was $43.50.a)Calculate the theoretical value of the rights and the ex-rights price.b)Calculate the amount raised by the company assuming it had 50 million issued shares prior to the rights issue, the process was a success and it paid fees of 6% to the investment bank that arranged the rights issue.

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The Answer of A company conducted a one-for-five renounceable rights issue at a subscription price of $35 when its cum-rights price was $43.50.a)Calculate the theoretical value of the rights and the ex-rights price.b)Calculate the amount raised by the company assuming it had 50 million issued shares prior to the rights issue, the process was a success and it paid fees of 6% to the investment bank that arranged the rights issue.

A Company Conducted a One-For-Five Renounceable Rights Issue at a Subscription