Mitsi Inventory Systems, Inc., has announced a rights offer. The company has announced that it will 1 answer below »

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Mitsi Inventory Systems, Inc., 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 $53. At the close of business the day before the ex-rights day, the companyAc€?cs stock sells for $80 per share. The next morning, you notice that the stock sells for $65 per share and the rights sell for $2 each.

What is the value of the stock ex-rights? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

  Stock price ex rights $   

  

What is the value of one right? Calculate your answer based on the actual ex-rights price. (Do not round intermediate calculations.)

  

  Value of one right $   

  

Are the rights underpriced or overpriced?
  (Click to select)UnderpricedOverpriced

  

What is the amount of instant profit you can make on ex-rights day per share?

  Instant profit $   

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