1.this company that is considering raising $8,000,000 by a rights offering currently has 800,000 shares outstanding that sell at a price of $90 per share. EPS is currently $1.25 and is expected to increase to $1.45 after the rights offering. How many rights is needed to purchase a share if the subscription price is set at $80 per share?

2. A company's unlevered cost of capital is 8%. The company has a market value of equity is $12,000,000. The company has an amount of $9,000,000 in outstanding debt at an interest rate of 4%. Assume the corporate tax rate is 20%. What is this company's cost of equity?