Katty Kit has announced a rights offer to raise $8 million. There are currently 1,500,000 shares...

Katty Kit has announced a rights offer to raise $8 million. There are currently 1,500,000 shares on issue trading at $21.06 each. The total number of shares on issue after the the rights issue will be 2,000,000. Calculate the theoretical ex-rights price and the value of a right.

		$19.80 ; $3.80
		$16.00; $5.06
		$21.06; $1.27
		$19.80; $1.80
		Cannot be determined, insufficient information

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 5 months ago

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Katty Kit has announced a rights offer to raise $8 million. There are currently 1,500,000 shares...

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