1- A company with 7,000,000 shares outstanding that sell for $70 each has announced a rights offer to raise $4,000,000. If it will take 4 rights to buy 1 share at the subscription price of $55 via the rights offering, what is the ex-rights price per share?

2- A company is considering a project that would cost $2,500,000, which would be financed with the issue of new shares. The project is expected to increase net income by $450,000. Currently, the company has 4,000,000 shares outstanding that sell on the market for $50 each while the book value per share is $40. Assume the companys current PE ratio of 12 would remain constant. If the company proceeds with the project, what is expected to be its new number of shares outstanding?