Problem:
Tricki Corp stock sells for $45 rights-on, and the subscription price is $35. Ten rights are required to purchase one share. Tomorrow the stock of Tricki will go ex-rights.
Required:
What is the price of Tricki expected to be when it begins trading ex-rights?
- $47.23
- $44.00
- $44.09
- $45.00
Note: Please provide step by step solution.