CEF are incorrect, below is how I went about getting those answers. Please leave how you arrived to the correct answer with your response. Thanks!

C. percentage drop=(subscription price/current price)-1)*100

=(5/12)-1)*100

=(0.41)-1)*100

=-58.33

E. amount raised=shares oustanding*offer ratio*subscription price

=15 million*1/5*4

=12 Million

F. stock price after issued = (current market cap+amount raised)/(current shares+additional shares)

=(4* 15 million+12 million) / (15 million + 12 million * 1/5)

=72/534

=13.33

rights? Pandora Box Company Inc. makes a rights issue at a subscription price of $5 a share. One new share can be purchased for every five shares held. Before the issue there were 15 million shares outstanding and the share price was $12. a. What is the total amount of new money raised? (Do not round intermediate calculations. Enter your answer in millions.) b. What is the expected stock price after the rights are issued? (Enter your answer rounded to 4 decimal places.) c. By what percentage would the total value of the company need to fall before shareholders would be unwilling to take up their (Do not round intermediate calculations. Enter your answer as a positive percent rounded to 2 decimal places.) d. Suppose that you initially own 100 shares plus $100 in the bank. If you take up your rights issue, what will be your total wealth after the issue is completed? (Do not round intermediate calculations. Enter your answer rounded to nearest whole dollar.) e. Suppose that the company now decides to issue the new stock at $4 instead of $5 a share. How many new shares would it have to raise the same sum of money? (Enter your answer in millions rounded to 1 decimal place.) f. What is the expected stock price under this new arrangement after the rights are issued? (Do not round intermediate calculations. your answer to 2 decimal places.) g. If you take up your rights issue under this new arrangement, what will be the impact on your total wealth after the issue is completed? h. Which arrangement makes you better off the first, the second, or neither? needed to Round Answer is complete but not entirely correct. a. $ b. $ C. New money raised Stock price Fall in total value Total wealth New shares Stock price 15 million 10.8333 per share 59.00 % 1,300 12.0 million 13.33 X per share d. $ e. f. $ rights? Pandora Box Company Inc. makes a rights issue at a subscription price of $5 a share. One new share can be purchased for every five shares held. Before the issue there were 15 million shares outstanding and the share price was $12. a. What is the total amount of new money raised? (Do not round intermediate calculations. Enter your answer in millions.) b. What is the expected stock price after the rights are issued? (Enter your answer rounded to 4 decimal places.) c. By what percentage would the total value of the company need to fall before shareholders would be unwilling to take up their (Do not round intermediate calculations. Enter your answer as a positive percent rounded to 2 decimal places.) d. Suppose that you initially own 100 shares plus $100 in the bank. If you take up your rights issue, what will be your total wealth after the issue is completed? (Do not round intermediate calculations. Enter your answer rounded to nearest whole dollar.) e. Suppose that the company now decides to issue the new stock at $4 instead of $5 a share. How many new shares would it have to raise the same sum of money? (Enter your answer in millions rounded to 1 decimal place.) f. What is the expected stock price under this new arrangement after the rights are issued? (Do not round intermediate calculations. your answer to 2 decimal places.) g. If you take up your rights issue under this new arrangement, what will be the impact on your total wealth after the issue is completed? h. Which arrangement makes you better off the first, the second, or neither? needed to Round Answer is complete but not entirely correct. a. $ b. $ C. New money raised Stock price Fall in total value Total wealth New shares Stock price 15 million 10.8333 per share 59.00 % 1,300 12.0 million 13.33 X per share d. $ e. f. $