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What would the new stock price be

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Reference no: EM132955505

Boles Bottling Co. has issued rights to its shareholders. The subscription price is $46 and three rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $55 rights-on.

Problem a. What would be the value of one right?

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

Reference no: EM132955505

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