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Dill owns five percent of the outstanding shares in Pickle Ltd,which has just announced a one...

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Finance

Dill owns five percent of the outstanding shares in PickleLtd,which has just announced a one for five rights issue with asubscription price of $1.90.The current 'cum rights' price forPickle shares is $2.20.If the number of outstanding shares inPickle Ltd is 5000,what is the theoretical value of the right toone new share?

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Dill owns five percent of the outstanding shares in PickleLtd,which has just announced a one for five rights issue with asubscription price of $1.90.The current 'cum rights' price forPickle shares is $2.20.If the number of outstanding shares inPickle Ltd is 5000,what is the theoretical value of the right toone new share?

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