In 2012, the Pandora Box Company made a rights issue at 12 a share of one new share for every ten shares held. Before the issue there were 10.7 million shares outstanding and the share price was 15.

The rights issue gave the shareholder the opportunity to buy one new share for less than the market price. What was the value of this opportunity per share owned?

What was the prospective stock price after the issue?

How far could the total value of the company fall before shareholders would be unwilling to take up their rights?