Expected price per share after the offering is completed

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Reference no: EM132000815

A company is planning a rights offering. The company has 10 million shares outstanding with a market value of $10 per share. It plans to issue 2,000,000 new shares with a right offering exercise price of $8.00 per share plus 50 rights. Based on these terms, what is the value of one right and what is the expected price per share after the offering is completed?

Reference no: EM132000815

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