10. Pep Clark owns stock in DeKalb Dairy. DeKalb is planning a rights offering in which seven shares must be owned to buy one additional share at a price of$15.

DeKalb stock currently sells for $63 per share rights-on .

a. What is the value of a DeKalb right?

b. At the time of the offering announcement, Pep's assets consisted of $1,500 in cash and 490 shares of DeKalb. List and show the value of Pep's assets prior to the ex-rights date.

c. List and show the value of Pep 's assets on the ex-rights date if DeKalb stock sells for $60 per share on that date.

d. List and show the value of Pep's assets if Pep sells the DeKalb rights on the exrigh ts date.