What is the value of a right

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Reference no: EM131956140

Question: The Clifford Corporation has announced a rights offer to raise $25 million. The stock currently sells for $60 per share, and there are 2 million shares outstanding.

a. If the subscription price is set at $50 per share, how many shares must be sold?

b. How many rights will it take to buy one share?

c. What is the ex-rights price (price after the rights are exercised)?

d. What is the value of a right?

Reference no: EM131956140

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