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The LaPorte Corporation Has a New Rights Offering That Allows

Question 34

Multiple Choice

The LaPorte Corporation has a new rights offering that allows you to buy one share of stock with 3 rights and $20 per share.The stock is now selling ex-rights for $26.The price rights-on is:


A) $22.00
B) $24.00
C) $26.00
D) $28.00
E) impossible to determine without the cum-rights price.

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