Explain cum-rights market puce per share

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Laura Ltd intends to raise $.25 million to finance a new project through a rights issue. The project has a 10 year economic life with ho salvage value and is expected to generate annual cash inflows of $.7, 372,280. The company has 4 million issued and fully paid shares. The cost of capital is 15% and before the announcement of the rights issue, the market price per share was $. 18.

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The cum-rights market puce per share

Reference no: EM132869153

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