Chapters 17-21 Saved Help Save & Exit Submit Problem 17-14 Investing in rights (LO17-3] Todd Winningham IV has $4.100 to invest. He has been looking at Gallagher Tennis Clubs Inc. common stock. Gallagher has issued a rights offering to its common stockholders. Five rights plus $50 cash will buy one new share. Gallagher's stock is selling for $70 ex-rights. a-1. How many rights could Todd buy with his $4,100? (Do not round intermediate calculations and round your answer to the nearest whole number.) Number of rights 1,025 a-2. Alternatively, how many shares of stock could he buy with the same $4,100 at $70 per share? (Do not round Intermediate calculations and round your answer to the nearest whole number.) Number of shares b. If Todd invests his $4,100 in Gallagher rights and the price of Gallagher stock rises to $75 per share ex-rights, what would his dollar profit on the rights be? (First compute profit per right) (Do not round Intermediate calculations and round your answer to the nearest whole dollar.) Todd Winningham Has $4.500 To Invest. He Has Been Checo.com 4 - Chapters 17-21 Saved Help Save & Exit Submit 5 b. If Todd invests his $4,100 in Gallagher rights and the price of Gallagher stock rises to $75 per share ex-rights, what would his dollar profit on the rights be? (First compute profit per right) (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Dollar profit 5 ipped Book Hint c. If Todd invests his $4,100 in Gallagher stock and the price of the stock rises to $75 per share ex-rights, what would his total dollar profit be? (Use the rounded number of shares from part a-2. Do not round any other intermediate calculations and round your answer to the nearest whole dollar.) Print erences Total dollar profit d. If Todd invests his $4,100 in Gallagher rights and the price of Gallagher's stock falls to $42 per share, ex-rights, what would his dollar profit on the rights be? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole dollar.) Dollar profit/loss w 71 A) W 30 X Todd Winningham Has $4,600 To Invest He Has Been... Chegg.co Served - Chapters 17-21 calculations and rouna your answer to the nearest wnole contar.) Help Save & Exit Sub Total dollar profit ed d. If Todd invests his $4,100 in Gallagher rights and the price of Gallagher's stock falls to $42 per share, ex-rights, what would his dollar profit on the rights be? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole dollar.) ok Dollar profitloss t ces e. If Todd invests his $4,100 in Gallagher stock and the price of Gallagher's stock falls to $42 per share ex-rights, what would be his total dollar profit? (Negative amount should be indicated by a minus sign. Use the rounded number of shares from part a-2. Do not round any other intermediate calculations and round your answer to the nearest whole dollar.) Dollar profitloss on the stock
