Happy Inc plans to raise $7,200,000 via a rights offering. Goldman serves as the underwriter of the offering and charges 10 percent spread from the proceeds of selling new shares. The subscription price of the shares offered is $40 per share. The number of shares outstanding prior to the rights offering is 1,000,000 and the rights-on price is $60 per share. You do not hold any share of the stock as of the ex-rights date (and do not have any rights), but plan to buy 1,000 new shares offered via the rights offering.

A) What is the net proceed to the firm for selling one new share in the rights offering

B)How many new shares are offered (i.e., sold) to raise the required funds?