Hello
I think there is a typing mistake on part a of the question. I have your book so i wanted to check with you, shouldn't a read "What must be the subscription price on the rights the company plans to offer?"
Please advise
Regards,
On second thoughts, i thought i would post the solution because when i re-read the question i became sure there was a typing mistake since you have posted the question that says "What must be the share price after the rights issue?" twice.
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So was I correct? :)
That is ok, i am sure it is a typing mistake because if you look at the question - as i told you - you will see that parts a & b are exactly the same which is impossible
Here is a copy of the question from the Book