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Clatter Co is to make a rights issue of one share at $1.60 for every three existing shares. There is a current dividend payment due of 4c per share, but the new shares will not qualify for this. The current price per share just prior to the rights issue is $2.12 cum dividend. What is the theoretical ex-rights price? A. $2.00 B. $1.96 C. $1.99 D. $1.95 |