Disaster Cleanup Stock Sells for $29 a Share

question 72

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

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