#$9.$

Nemesis, Incorporated, has $154,000$ shares of stock outstanding. Each share is worth $$120,$ so the company's market value of equity is $$18,480,000.$

A$.$ Suppose the firm issues $22,000$ new shares at the price of $$120,$ what will the effect be of this offering price on the existing price per share?

Amount $\_\_\_\_\_\_?$

B$.$ Suppose the firm issues $22,000$ new shares at the price of $$108,$ what will the effect be of this offering price on the existing price per share?

Amount $\_\_\_\_\_\_?$

C$.$ Suppose the firm issues $22,000$ new shares at the price of $$86,$ what will the effect be of this offering price on the existing price per share?

Amount $\_\_\_\_\_\_?$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

#$10.$

Prahm Corporation wants to raise $$5\mathrm{.}6$ million via a rights offering. The company currently has $470,000$ shares of common stock outstanding that sell for $$40$ per share. Its underwriter has set a subscription price of $$27$ per share and will charge the company a $6$ percent spread. If you currently own $8,000$ shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?

A$.$ $$33,225\mathrm{.}70$

B$.$ $$34,554\mathrm{.}73$

C$.$ $$34,886\mathrm{.}98$

D$.$ $$31,896\mathrm{.}67$

E$.$ $$31,842\mathrm{.}54$