1.) Bowman, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $48 each. There will be 160,000 new shares offered at $40 each. a. What is the new market value of the company? New market value ______________________$ b. How many rights are associated with one of the new shares? Number of rights needed________________ c. What is the ex-rights price? (Round your answer to 2 decimal places. (e.g., 32.16)) Ex-rights price______________________ $ d. What is the value of a right? (Round your answer to 2 decimal places. (e.g., 32.16)) Value of a right_____________________ $ 2.) The Woods Co. and the Mickelson Co. have both announced IPOs at $56 per share. One of these is undervalued by $8, and the other is overvalued by $2, but you have no way of knowing which is which. You plan to buy 1,200 shares of each issue. If an issue is underpriced, it will be rationed, and only half your order will be filled. If you could get 1,200 shares in Woods and 1,200 shares in Mickelson, what would your profit be? Profit ___________________$ What profit do you actually expect? Expected profit____________________ $ 3.) The Huang Corporation needs to raise $86 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $40 per share and the companys underwriters charge a spread of 8 percent, how many shares need to be sold? (Do not round intermediate calculations and round your final answer to nearest whole number. Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Number of shares offered________________________ 4. The Huang Corporation needs to raise $72 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $55per share and the company's underwriters charge a spread of 5 percent. If the SEC filing fee and associated administrative expenses of the offering are $700,000, how many shares need to be sold? (Do not round intermediate calculations and round your final answer to nearest whole number. Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Number of shares offered_______________________ 5. The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $17.30 for each of the 15 million shares sold. The initial offering price was $21.00 per share, and the stock rose to $23.40 per share in the first few minutes of trading. Raven paid $540,000 in direct legal and other costs and $170,000 in indirect costs. What was the flotation cost as a percentage of funds raised? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Flotation cost ______________________%