The explaination from text book about rights as
"Issuing more shares dilutes the value of outstanding stock. But because the rights issue allows the existing shareholders to buy the newly issued stock at a discount, they are compensated for the impending share dilution"
but in case of DES, where is the discount?? do you think they manipulated sp to stop shareholder take part in it ?
rights issue and sale of building, page-16
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