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Assuming Everything Else Is Constant,if a Stock's Old Price Is

Question 3

Multiple Choice

Assuming everything else is constant,if a stock's old price is $40 and the ex-rights or new stock price is $32,then the value of the right is:


A) -$8.
B) $8.
C) impossible to determine without the subscription price.
D) impossible to determine without the number of rights needed to buy one share.

Correct Answer:

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