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Compute the value of a right

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Question - Sassy Ltd has decided to undertake a rights issue that will raise $300 million. The current share price is $14 and there are 200 million shares outstanding. It has decided to appoint its investment banker to underwrite the rights issue. The underwriting fee will be 2.5 per cent of proceeds. The subscription price is set at 30 percent discount. Compute the value of a right.

Reference no: EM133066611

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