Bowman, Inc., is proposing a rights offering. Presently there are 400,000 shares outstanding at $73 each. There will be 50,000 new shares offered at $65 each.

a. What is the new market value of the company?

b. How many rights are associated with one of the new shares?

c. What is the ex-rights price?

d. What is the value of a right?

e. Why might a company have a rights offering rather than a general cash offer?