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To determine the value of a rights offering, the stockholder needs to know the following two pieces of information in addition to the current stock price: A) subscription price and the number of rights needed to acquire a new share.
B) current market price per share and the number of rights needed to acquire a new share.
C) current market price per share and the standby fee.
D) detachment date and the subscription price.
E) the number of rights needed to acquire a new share and the number of shares currently owned.
Answer: the subscription price and the number of rights needed to acquire a new share.

Respuesta :

In addition to the current stock price subscription price and the number of rights needed to acquire a new share. Existing shareholders can participate in a public company's rights offering at a fixed price known as a subscription price.

The word could also be used to describe the price at which a stock's warrant holders can exercise their rights. Along with debt offers, a company's may issue warrants at various points in time. a request for the general public to purchase fresh shares of a corporation. The amount that subscribers to the subscription price offering will initially pay per share of holding company conversion stock.

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