Question: Computer Graphics has announced a rights offering for its shareholders. Carol Stevens owns 3,200 shares of Computer Graphics stock. Five rights plus $72 cash are

Computer Graphics has announced a rights offering for its shareholders. Carol Stevens owns 3,200 shares of Computer Graphics stock. Five rights plus $72 cash are needed to buy one of the new shares. The stock is currently selling for $96 rights-on.

(a)

What is the value of a right? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Value per right

(b-1)

How many of the new shares could Carol buy if she exercised all her rights?

Number of shares

(b-2)

How much cash would this require? (Omit the "$" sign in your response.)

Cash required

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