Disney will conduct a rights issue to raise $150 million in funding. Firms value is currently $3500 million with 35 million shares outstanding. The firm has 2 options.

Option 1: Firm wants to set subscription price discount from the pre issue price to 6%

What is the number of shares required to receive 1 right (noninteger numbers are likely, report to 3 decimal points.) in this case? What will be the value of the right?

Option 2: The firm conducts a 6:1 rights issue All rights will be exercised. What is the lowest subscription price the company can offer and still raise funds?

What percentage discount from current price does the subscription price represent? What will be the share price after the completed rights issue in this case?