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Compute the value of the subscription right

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Reference no: EM133056087

Raptor Ltd has currently 250 million ordinary shares outstanding, each with a face value of S$1 and currently trading at S$6.25.

Raptor will issue new shares at S$5.5 each, with one subscription right attached to every 5 shares owned.

(a) Compute the value of the subscription right.

Reference no: EM133056087

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