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What is the subscription price for the new shares

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Reference no: EM132965468

JohnSmith Co. is attempting to raise $5,000,000 in new equity with a rights offering with  125,000 new shares. The stock currently sells for $50 per share and there are 250,000 shares outstanding.

Problem a. What is the subscription price for the 125,000 new shares?

Problem b. What will the price per share be if all rights are exercised?

Reference no: EM132965468

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