What would be the value of one right

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Boles Bottling Co. has issued rights to its shareholders. The subscription price is $50 and five rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $65 rights-on.

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

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.)

Reference no: EM132379765

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