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3. a. Experienced Virgins Airline is proposing a rights offering. Presently, there are 400,000 shares outstanding...

3. a. Experienced Virgins Airline is proposing a rights offering. Presently, there are 400,000 shares outstanding at ₵75 each. There will be 70,000 new shares offered at ₵70 each. i. What is the new market value of the company? ii. How many rights are associated with one of the new shares? iii. What is the ex-rights price? iv. What is the value of a right?

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