1) The Patia Paper Company has 1 million shares of common stock outstanding. The Board of Directors has just voted for a 3 -for-1 split. At the time of the announcement, the market price of the stock was $60 a share. If you owned 100 shares of stock before the split, what would be the value of your holding before and after the stock split? [12 marks] The Mangino Company's common stock is currently selling for $20 a share and has 5 million shares outstanding. The company wishes to raise $16 million through a rights offering by selling 1 million new shares at $16 a share. Compute the value of a right and the stock when it is selling ex-rights. [13 marks]