Knight Inventory Systems, Incorporated, has announced a rights offer. The company has announced that it...
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Knight Inventory Systems, Incorporated, has announced a rights offer. The company has announced that it will take three rights to buy a new share in the offering at a subscription price of $55. At the close of business the day before the ex-rights day, the companys stock sells for $90 per share. The next morning, you notice that the stock sells for $70 per share and the rights sell for $3 each. a. What is the value of the stock ex-rights? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value of a right? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g
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