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Cameo Co, which has an issued capital of 3 million shares, having a current market value...

Cameo Co, which has an issued capital of 3 million shares, having a current market value of £2.90 each, makes a rights issue of one new share for every two existing shares at a price of £2.30.

What is the theoretical ex-rights price of the shares?

A        £2.70 per share

B        £3.47 per share

C        £4.05 per share

D        £4.15 per share

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