For short-answer questions, plz provide your answers and explanations. For numerical questions, plz show your work. Plz answer the whole question. Type it out and make sure it's correct plz. I WILL GIVE THUMBS UP!!!! THANKS!

Plz also check if I did d) correctly THANK YOU!!

The Windsor Corporation has 120,000 shares outstanding with a current market price of $8.10 per share. The company needs to raise an additional $36,000 to finance new expenditures, and has decided on a rights issue. The issue will allow current stockholders to purchase one additional share for 20 rights at a subscription price of $6 per share.

1. How many new shares must be issued?
2. What will be the ex-rights stock price?
3. If the ex-rights price were set at $7.90, would you as a potential new stockholder choose to buy shares ex-rights or buy shares at the old price and exercise your rights?
4. Suppose that the company was also considering structuring the rights issue to allow for an additional share to be purchased for 10 rights at a subscription price of $3. Prove that a stockholder with 100 shares would be indifferent between purchasing a new share for 10 rights at $3 or purchasing a new share for 20 rights at $6.
5. Why do you think the company chose a rights issue rather than a general cash offer to raise new capital?

MY ANSWER FOR d)

Stock price ex-rights for 20 rights:

= (Market value of share prior to right issue+Cash received from right share issue)Number of shares

= ($8.1020+$6)(20+1)

= $8.00 per share

Market value = (20+5)$8 = $840

Stock price ex-rights 10 rights:

= (Market value of share prior to right issue+Cash received from right share issue)Number of shares

= ($8.1010+$3)(10+1)

= $7.64 per share

Market value = (100+10)$7.64 = $840

Hence, shareholder is indifferent between 2 plans