part A

Leah, Inc., is proposing a rights offering. Presently there are600,000 shares outstanding at $57 each. There will be 25,000 newshares offered at $47 each.

a.	What is the new market value of the company? (Do notround intermediate calculations.)
b.	How many rights are associated with one of the new shares?(Do not round intermediate calculations.)
c.	What is the ex-rights price? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)
d.	What is the value of a right?

Part B

Red Shoe Co. has concluded that additional equity financing willbe needed to expand operations and that the needed funds will bebest obtained through a rights offering. It has correctlydetermined that as a result of the rights offering, the share pricewill fall from $56 to $52.40 ($56 is the rights-on price; $52.40 isthe ex-rights price, also known as the when-issuedprice).The company is seeking $28 million in additional funds with aper-share subscription price equal to $40.

How many shares are there currently, before the offering?(Assume that the increment to the market value of the equity equalsthe gross proceeds from the offering.)

Part C

Nemesis, Inc., has 175,000 shares of stock outstanding. Eachshare is worth $73, so the company’s market value of equity is$12,775,000. Suppose the firm issues 32,000 new shares at thefollowing prices: $73, $67, and $61.

What will be the ex-rights price and the effect of each of thesealternative offering prices on the existing price per share?(Leave no cells blank; if there is no effect select "Nochange" from the dropdown and enter "0". Round your answers to 2decimal places, e.g., 32.16.)

Price Ex-Rights Effect Amount a. $ $    $ per share b. $ $    $ per share c. $ $    $ per share