What will be the theoretical value of the rights attached

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Problem 1: Agate plc is listed on the London Stock Exchange. It intends to announce immediately a one-for-four rights issue at an issue price of £5.00. The current share price of the company is £8.00. What will be the theoretical value of the rights attached to each original share?

A £2.40

B £1.85

C £0.75

D £0.60

Reference no: EM132757408

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