Question
4 55.54 Todd Winningham IV has $6,300 to invest. Todd owns shares of Gallagher Tennis Clubs Inc. Cages has to common shareholders. Five rights plus
4 55.54 Todd Winningham IV has $6,300 to invest. Todd owns shares of Gallagher Tennis Clubs Inc. Cages has to common shareholders. Five rights plus $72. cash will buy one new share. Gallagher's stock is selling for ex a-1. How many rights could Todd buy with his $6,300? Number of rights a-2. Alternatively, how many shares of stock could he buy with the same $6,300 at $87 per share? Pound the flow of nearest whole number.) Number of shares b. If Todd invests his $6,300 in Gallagher rights and the price of Gallagher stock rises to $90 per share exoghts, what would be his dollar profit on the rights? (Firstcompute profits per right.) (Do not round intermediate calculations.) Dollar profit c. If Todd invests his $6,300 ingher stock and the price of the stock rises to $90 per share ex-rights, what would be his total dollar profit? (Round intermediate calculations.) Total dollar profit d. What would be the answer to part b if the price of Gallagher's stock falls to $64 per share ex-rights instead of rising to $50 (Negative answer should be indicated by a minus sign.) Hace on the rights
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