Boles Bottling Co. has issued rights to its shareholders. The subscription price is $68 and eight rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $88 rights-on.
a. What would be the value of one right? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Value of one right
b. If the stock goes ex-rights, what would the new stock price be? (Do not round intermediate calculations and round your answer to 2 decimal places.)
New stock price