Question: Answer the questions based on the table below Before rights offering After rights offering Value of equity $200,000,000 ( ) # of shares 10,000,000 (

Answer the questions based on the table below

Before rights offering

After rights offering

Value of equity

$200,000,000

( )

# of shares

10,000,000

( )

Stock price

$20

( )

New equity capital

$40,000,000

Subscription price

$10

# of new shares

( )

# of rights

( )

Conversion ratio for a right to a new share

( )

Value of a right

( )

Figure out the number of new shares issued given the subscription price.

Figure out the conversion ratio for rights to a new share.

Figure out the stock price after the rights offering.

Figure out the value of a right.

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