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Keira Mfg. is considering a rights offer. The company has determined that the ex-rights price would...

Keira Mfg. is considering a rights offer. The company has determined that the ex-rights price would be $58. The current price is $78.00 per share and there are 9 million shares outstanding. The rights offer would raise a total of $81,000,000.

a)How many rights are required to get a new share?

b)Given that 2 rights are needed to get a new share, what is the subscription price (the price for a new share)?

c)What is the value of a right?

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