What the theoretical price of a right is

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Question 1: A company's shares are trading at $14 when it decides to make a 5.5 rights issue at an issue price of $10.80. The theoretical price of a right is:

Select one:

Option a. $3.20

Option b. $13.51

Option c. $3.78

Option d. $2.71

Reference no: EM132574340

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