What is the ex-rights stock price

Reference no: EM131424330

Rights A company's stock currently sells for $63 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit $12 and three rights.

a. What is the ex-rights stock price?

b. What is the price of one right?

c. When will the price drop occur? Why will it occur then?

Reference no: EM131424330

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