Boles Bottling Co. has issued rights to its shareholders. The subscription price is $40 and six rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $49 rights-on.

a. What would be the value of one right? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Value of one right

b. If the stock goes ex-rights, what would the new stock price be? (Do not round intermediate calculations and round your answer to 2 decimal places.)

New Stock Price