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Bigfi, Inc., is proposing a rights offering. There are 3 0 0 , 0 0 0 shares outstanding, trading at $ 2 0 each. There

Bigfi, Inc., is proposing a rights offering.

There are

300, 000

shares outstanding, trading at $

20

each.

There will be

20, 000

new shares issued at a $

15

subscription price.

1 .

What is the new market value of the firm?

2 .

What is the ex

-

rights price?

3 .

What is the value of a right?

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