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Business, 19.05.2020 17:01 ijohnh14

Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take three rights to buy a new share in the offering at a subscription price of $41. 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 $52 per share and the rights sell for $2 each.
1. What is the value of the stock ex rights? (Round your answer to 2 decimal places. (e. g., 32.16))2. What is the value of the rights?3. What is the amount of instant profit you can make on ex rights day per share?

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