Please write out the formulas and explanations so I can see the steps thank you.

1.Suppose a firm wants to raise money through a seasoned equity offering. The firm's corporate charter states that a rights offering must take place.

Current shares outstanding:20 million

Current market price per share:$20/share

Suppose the firm wants to raise $100 million in cash at a subscription price of $16/share.

a)How many rights will purchase one new share?

b)On ex-rights day, what does the stock price change to, all else constant?

c)What is the value of one right (i.e. its price)?