What is the value of the stock ex rights

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Question: Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take four rights to buy a new share in the offering at a subscription price of $35. At the close of business the day before the ex-rights day, the company's stock sells for $60 per share. The next morning, you notice that the stock sells for $53 per share and the rights sell for $3 each. What is the value of the stock ex rights? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) swam-ants _ What is the value of a right? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Reference no: EM132757518

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