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    What is the value of one right?

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    Barstow industrial supply has decided to raise 427.52 million in additional funding via a rights offering. the firm will issue one right for each share of stock outstanding. the offering consists of a total of $860,000 new shares. the current market price of the stock is $35. currently, there are 5.16 million shares outstanding. what is the value of one right?
    what formula would process this question and how is it used?

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    https://brainmass.com/math/algebra/what-is-the-value-of-one-right-376764

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    Subscription price = $27.52 * 10^6 /860,000 = $32 per share

    Number of ...

    Solution Summary

    The Solution provides the value of one right.

    $2.49

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