Southern Markets Has Announced a Rights Offer to Raise $3,628,800

Southern Markets has announced a rights offer to raise $3,628,800. The company's stock currently sells for $26.80 per share, there are 675,000 shares outstanding, and one right will be granted for each outstanding share. The subscription price is set at $21 per share. What is the ex-rights price per share?

A) $25.58
B) $25.62
C) $25.09
D) $24.87
E) $25.42

Correct Answer:

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