The Clifford Corporation has announced a rights offer to raise $15 million for a new journal,...

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Finance

The Clifford Corporation has announced a rights offer to raise$15 million for a new journal, the Journal of FinancialExcess. This journal will review potential articles after theauthor pays a nonrefundable reviewing fee of $3,000 per page. Thestock currently sells for $30 per share, and there are 1.8 millionshares outstanding.
a.
What is the maximum possible subscription price? What is theminimum? (Leave no cells blank - be certain to enter "0"wherever required.)
b. If the subscription price is set at $25 per share, how manyshares must be sold? How many rights will it take to buy one share?(Do not round intermediate calculations. Round your rightsneeded answer to 2 decimal places, e.g., 32.16.)
c. What is the ex-rights price? What is the value of a right?(Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)
d. A shareholder with 2,000 shares before the offering has nodesire (or money) to buy additional shares offered as rights. Whatis his portfolio value before and after the rights offer?(Do not round intermediate calculations and round youranswers to nearest whole number, e.g., 32.

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The Clifford Corporation has announced a rights offer to raise$15 million for a new journal, the Journal of FinancialExcess. This journal will review potential articles after theauthor pays a nonrefundable reviewing fee of $3,000 per page. Thestock currently sells for $30 per share, and there are 1.8 millionshares outstanding.a.What is the maximum possible subscription price? What is theminimum? (Leave no cells blank - be certain to enter "0"wherever required.)b.If the subscription price is set at $25 per share, how manyshares must be sold? How many rights will it take to buy one share?(Do not round intermediate calculations. Round your rightsneeded answer to 2 decimal places, e.g., 32.16.)c.What is the ex-rights price? What is the value of a right?(Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)d.A shareholder with 2,000 shares before the offering has nodesire (or money) to buy additional shares offered as rights. Whatis his portfolio value before and after the rights offer?(Do not round intermediate calculations and round youranswers to nearest whole number, e.g., 32.