Mitsi Inventory Systems Inc. has announced a rights offer. The company has announced that it will take four rights to buy a new share in the offering at a subscription price of $$25.$ At the close of business the day before the ex$-$rights day, the company$$s stock sells for $$50$ per share. The next morning you notice that the stock sells for $$45$ per share and the rights sell for $$3$ each.

What is the value of the stock ex$-$rights? $($Do not round intermediate calculations. Omit $ sign in your response.$)$

Stock ex$-$rights $

What is the value of the rights? $($Do not round intermediate calculations. Omit $ sign in your response.$)$

Value of the rights $

Are the rights underpriced or overpriced?

multiple choice

Overpriced

Underpriced

What is the amount of instant profit you can make on ex$-$rights day per new share? $($Do not round intermediate calculations. Omit $ sign in your response.$)$

Instant profit $