1) Assume that Classique decides to set the subscription price at $4 rather than $2. Now what will the value of a right be? (Assume all other information remains the same.) A. $0.25 B. $0.40 C. $0.80 D. $1.20 E. $2.50

2) Bartow Industrial is reviewing a new proposal which will require $360,000 of new fixed assets. The net present value of the project is $84,000. The price-earnings ratio of the project equals that of the existing firm. What will the new book value per share be after the project is implemented given the following current information on the firm? Number of Shares Outstanding 50,000 Book Value $894,000 Market Value $1,072,000 Net Income $67,000 Price Earnings Ratio 16 Earnings Per Share $1.34 A. $16.22 B. $18.77 C. $22.47 D. $23.61 E. $25.08

Explaination please