The Royal Gold’s stock currently sells for RM 90 per share. The firm issued rights to raise new equity. To purchase a new share, a stockholder must remit RM 25 and four rights. (Tip: use ratio...

The Royal Gold’s stock currently sells for RM 90 per share. The firm issued

rights to raise new equity. To purchase a new share, a stockholder must remit

RM 25 and four rights. (Tip: use ratio perspective to approximate the share of

quantity.)



(a) Calculate the price of one right.