Question: Computer Graphics has announced a rights offering for its shareholders. Carol Stevens owns 2 , 0 0 0 shares of Computer Graphics stock. Five rights

Computer Graphics has announced a rights offering for its shareholders. Carol Stevens owns 2,000 shares of Computer Graphics stock. Five rights plus $60 cash are needed to buy one of the new shares. The stock is currently selling for $78 rights-on.
a. What is the value of a right?
b. How many of the new shares could Carol buy if she exercised all her rights?
c. How much cash would she require?

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