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Business, 06.07.2020 20:01 Sbeech7362

Mr. and Mrs. Anderson own four shares of Magic Tricks Corporation's common stock. The market value of the stock is $72. The Andersons also have $52 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $52 for each four shares currently owned (based on four rights).A. What is the value of a right? B. What is the value of the Andersonsâ portfolio before the rights offering?
C-1. Compute the diluted value (ex-rights) per share.
C-2. If the Andersons participate in the rights offering, what will be the value of their portfolio, based on the diluted value (ex-rights) of the stock?
D. If they sell their two rights but keep their stock at its diluted value and hold on to their cash, what will be the value of their portfolio?

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Mr. and Mrs. Anderson own four shares of Magic Tricks Corporation's common stock. The market value o...
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