Holden Corp. has announced a rights offer to raise $90,000,000 for a new journal, the Journal of Financial Excess. This journal will review potential articles after the author pays a nonrefundable reviewing fee of $9,000 per page. The stock currently sells for $125 per share, and there are 20,625,000 shares outstanding.

a) What is the maximum possible subscription price?

Maximum subscription price = $

b) If the subscription price is set at $48 per share, how many shares must be sold?

Shares must be sold =

c) With the $48 subscription price, how many rights will it take to buy one share?

Number of Rights =

d) What is ex-rights price?

Ex-rights price = $

e) What is the value of a right?

Value of a right = $