Final answer:
To calculate the ex-rights value of the stock, multiply the number of rights by the price per right and subtract that value from the original stock price.
Step-by-step explanation:
The ex-rights value of a stock is the value of the stock after the rights offering has been exercised. To calculate the ex-rights value, we need to determine the number of rights needed to purchase one share of stock and the price at which each right is sold.
In this scenario, it is stated that nine rights are necessary to purchase one share of stock at a price of $99. Additionally, each right sells for $7.70.
To calculate the ex-rights value, we can multiply the number of rights by the price per right and subtract that value from the original stock price. (9 * $7.70 = $69.30).
Therefore, the ex-rights value of the stock is $69.30.