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Calculate the theoretical ex-rights share price

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Reference no: EM132958159

Myer Holdings Limited has a share price of $2.82. The company has made a renounceable rights issue offer to shareholders. The offer is a three-for-ten pro-rata issue of ordinary shares at $2.60 per share.

Problem i) What is the price of the right?

Problem ii) Calculate the theoretical ex-rights share price.

Reference no: EM132958159

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