Theoretical Ex-Rights Price and the Value of a Right Assignment
February 18th, 2020
Katty Kit has announced a rights offer to raise $8 million. There are currently 1,500,000 shares on issue trading at $21.06 each. The total number of shares on issue after the the rights issue will be 2,000,000. Calculate the theoretical ex-rights price and the value of a right.
|$19.80 ; $3.80|
|Cannot be determined, insufficient information|
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