$($a$)$ Money Corp. is proposing a rights offering. Presently there are $800,000$ shares

outstanding at RM$11$ each. There will $100,000$ new shares offered at RM$8$ each.

Calculate the following:

$($i$)$ New market value of the company.

$(3$ marks$)$

$($ii$)$ Numbers of rights that associated with one new shares.

$(3$ marks$)$

$($iii$)$ The ex$-$rights price.

$(4$ marks$)$

$($iv$)$ The value of a right.

$(3$ marks$)$

$($b$)$ Milk Corporation currently has $2,500,000$ shares of stock outstanding that sell for

RM$55$ per share. Assuming no market imperfections or tax effects exist, determine

the share price be after:

$($i$)$ Milk has a six$-$for$-$two stock split.

$(2$ marks$)$

$($ii$)$ Milk has a $17\%$ stock dividend.

$(2$ marks$)$

$($iii$)$ Milk has a $35\%$ stock dividend.

$(2$ marks$)$

$($iv$)$ Milk has a four$-$for$-$seven reverse stock split.

$(2$ marks$)$

$($v$)$ Determine the new number of shares outstanding in part $($i$)$ through $($iv$).$

$(4$ marks$)$