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- VALUE OF A RIGHT
-
- THE PRIVILEGE OF A STOCKHOLDER TO SUBSCRIBE AT A STATED PRICE
- TO NEW ISSUES OF COMMON STOCKS IN PROPORTION TO HIS PRESENT
- HOLDINGS IS A RIGHT OR STOCK RIGHT. THIS PRIVILEGE IS
- GENERALLY OFFERED FOR A VERY LIMITED PERIOD. DURING THIS
- PERIOD MAY EXERCISE HIS OFFER OR HE MAY SELL THE RIGHT TO
- ANOTHER INVESTOR. WHEN THE RIGHTS OFFERING IS ANNOUNCED THE
- BOARD OF DIRECTORS ESTABLISHES A CUTOFF DATE. ANYONE WHO
- PURCHASES THE STOCK BEFORE THAT DATE RECEIVES RIGHTS FOR THE
- NEW ISSUE. THE STOCK IS THEN SAID TO SELL RIGHTS-ON. AFTER
- THE CUTOFF DATE NEW PURCHASERS OF THE STOCK DO NOT GET THE
- RIGHT AND THE STOCK IS TRADED EX-RIGHTS.
-
- PRESS ENTER TO CONTINUE?
- GIVEN THE MARKET VALUE OF 1 SHARE OF STOCK SELLING RIGHTS-ON,
- THE SUBSCRIPTION PRICE PER SHARE, AND THE NUMBER OF RIGHTS
- REQUIRED TO PURCHASE ONE SHARE OF STOCK THIS PROGRAM WILL
- COMPUTE THE MARKET VALUE OF 1 RIGHT WHEN THE STOCK IS SELLING
- RIGHTS-ON, THE THEORETICAL VALUE OF ONE SHARE OF STOCK WHEN
- IT GOES EX-RIGHTS, AND THE THEORETICAL VALUE OF 1 RIGHT
- WITH THE STOCK SELLING EX-RIGHTS.
-
- PRESS ENTER TO BEGIN?
- ENTER MARKET VALUE OF 1 SHARE RIGHTS-ON? 1223.45
- ENTER SUBSCRIPTION PRICE PER SHARE ? 22.44
- ENTER # RIGHTS NEEDED TO BUY 1 SHARE ? 55
-
-
- MARKET VALUE OF 1 RIGHT - RIGHTS-ON 21.4466
- THEORETICAL VALUE OF 1 SHARE EX-RIGHTS 1202.
- THEORETICAL VALUE OF 1 RIGHT EX-RIGHTS 21.4466
-
- PRESS ENTER FOR MORE COMPUTATION? -1
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