What would be the value of one right and New stock price

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Reference no: EM131493126

Boles Bottling Co. has issued rights to its shareholders. The subscription price is $68 and eight rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $88 rights-on.

a. What would be the value of one right? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Value of one right

b. If the stock goes ex-rights, what would the new stock price be? (Do not round intermediate calculations and round your answer to 2 decimal places.)

New stock price

Reference no: EM131493126

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