Brandy Inc. is a \$100 million oil company. The company has one million shares outstanding and no debt. Expecting the price of oil to increase, Brandy Inc. is planning to raise \(\$ 10\) million through a rights offering to finance the purchase of an oil well. The company has decided to make the subscription price on a new share \(\$ 75\), and, to comply with the state's preemption right, the company will issue one right for each share.

a. Determine the number of rights that will be needed to buy one new share.

b. What is the intrinsic value of each right?