What would be the value of one right

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Question - Boles Bottling Co. has issued rights to its shareholders. The subscription price is $85 and six rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $95 rights-on.

Required -

a. What would be the value of one right?

b. If the stock goes ex-rights, what would the new stock price be?

Reference no: EM133177199

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