Grantland Rice Co. has issued rights to its shareholders. The subscription price is $74, and 7 fights are needed along with subscription price to buy one of the new shares. The stock is selling for $96 rights-on. . What would be the value of one right? (Omit $ sign in your response. Round the final answer to 2 decimal places.) Walue of one right If the stock goes ex-rights, what would be the new share price? (Omit $ sign in your response. Round your intermediate nswer to 2 decimal places.) ew stock price $[
Grantland Rice Co. has issued rights to its shareholders. The subscription price is $74, and 7 fights are needed along with subscription price to buy one of the new shares. The stock is selling for $96 rights-on. . What would be the value of one right? (Omit $ sign in your response. Round the final answer to 2 decimal places.) Walue of one right If the stock goes ex-rights, what would be the new share price? (Omit $ sign in your response. Round your intermediate nswer to 2 decimal places.) ew stock price $[
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Grantland Rice Co. has issued rights to its shareholders. The subscription price is $74, and 7 rights are needed along with the
subscription price to buy one of the new shares. The stock is selling for $96 rights-on.
a. What would be the value of one right? (Omit $ sign in your response. Round the final answer to 2 decimal places.)
Value of one right
$
b. If the stock goes ex-rights, what would be the new share price? (Omit $ sign in your response. Round your intermediate and final
answer to 2 decimal places.)
New stock price
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