Jeff's Is Granting One Right for Each Share of Stock

question 65

Multiple Choice

Jeff's is granting one right for each share of stock outstanding for its new rights offering. The new shares in this offering are priced at $16 plus four rights. The current market price of the stock is $20 a share. What is the value of one right?

• A) $1.05
• B) $.80
• C) $1.00
• D) $1.50
• E) $4.00

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Definitions:

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