Madonna Fashions Inc. has issued rights to its shareholders. The subscription price is $78, and four rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $97 rights-on.

a. What would be the value of one right? (Round the final answer to 2 decimal places.)

Value of one right $

b. If the stock goes ex-rights, what would be the new share price? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

New stock price $