Hello. I am looking for homework help in Corporate Finance.#3

.. 76% i 18:05 Award: 20.00 points The Clifford Corporation has announced a rights offer to raise $20 million for a newjournal, the Journal of Financial Excess. This journal will review potential articles after the author pays a nonrefundable reviewing fee of $4,000 per page. The stock currently sells for $60 per share, and there are 3.1 million shares outstanding. a. What is the maximum possible subscription price? What is the minimum? (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.) The maximum possible subscription price is 3 The minimum price is anything greater than $ b. If the subscription price is set at $50 per share, how many shares must be sold? How many rights will it take to buy one share? (Do not round intermediate calculations. Round your rights needed answer to 2 decimal places, e.g., 32.16.) Number of new shares shares Number of rights needed rights c. What is the ex-rights price? What is the value of a right? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Exirighls price S Value of a right 3: .I A _L_.._.I__I_I_.....:J.L (.1 Ann -I._..__ I.__.._ .I.I_.. X 50' '3 All 76%318:05 Assignment Print View El ezto.mheducation.com El o. n tne suoscnptlon price Is set at $bU per share, how many shares must be sold? How many rights will it take to buy one share? (Do not round intermediate calculations. Round your rights needed answer to 2 decimal places, e.g., 32.16.) Number of new shares shares Number of rights needed rights c. What is the ex-rights price? What is the value of a right? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Exrrights price S Value of a right 0 d. A shareholder with 2,000 shares before the offering has no desire (or money) to buy additional shares offered as rights. What is his portfolio value before and after the rights offer? (Do not round intermediate calculations.) Portfolio value before rights 3 Portfolio value after rights $ Worksheet Difculty: 1 Basic Section: 199 Rights Show simplied view X