Question: can you solve this problem and provide work & the answers. 1. Rights Offerings Chanelle, Inc., is proposing a rights offering. Presently, there are 625,000

can you solve this problem and provide work & the answers.

1. Rights Offerings Chanelle, Inc., is proposing a rights offering. Presently, there are 625,000 shares outstanding at $87 each. There will be 85,000 new shares offered at $78 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 oifering rather than a general cash offer? 2. A company's stock currently sells for $87 per share. Last week the firm issued rights to raise new equity. To purchase a new share, a stockholder must remit \$28 and 3 rights. a. What is the ex-rights stock price? b. What is the price of one right

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