The value of a right depends upon:
I.the number of rights required to purchase one new share.
II.the market price of the security.
III.the subscription price.
IV.the price-earnings ratio of the stock.
A)II and III only
B)II and IV only
C)I and II only
D)I, II, and III only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

The value of a right depends on the number of rights required to purchase one new share (I), the market price of the security (II), and the subscription price (III). The price-earnings ratio of the stock (IV) is not directly related to the value of a right.

The Value of a Right Depends Upon