7. Cayuga Corporation is planning to raise $70 million through the sale of new common stock under a rights offering. The subscription price is $70 per share. The stock currently sells for $80 per share, rights on (i.e., it is before the ex-rights date). Total outstanding shares equal 10 million before the issue. Of this amount, Ali Cokbilir owns 100,000 shares. a. How many new shares will the company issue? b. How many rights are needed to purchase on new share? c. What will be the total value of Ali's rights a day before the ex-rights date, assuming that the market price of Cayuga stock remains at $80 per share? d. Suppose that the rights are selling at a price of $1.00. Is there any arbitrage opportunity? What type of strategy should Ali follow if the market price of Cayuga stock remains at $80 per share