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ml?ret on.com oters 17, 18, 19 Help Save & Exit Subm Todd Winn ningham V has $5,100 to Invest. Todd owns shares of Gellagher Tennis
ml?ret on.com oters 17, 18, 19 Help Save & Exit Subm Todd Winn ningham V has $5,100 to Invest. Todd owns shares of Gellagher Tennis Clubs Inc. Gallegher has issued a rights offering to lts common shareholders. Slx rights plus $52 cash will buy one new share. Gallagher's stock is selling for $70 ex-rights. a-1. How many rights could Todd buy with his $5,100? Number of rights a-2. Alternatively, how many shares of stock could he buy with the same $5,100 at $70 per share? (Round the final answer to the nearest whole number.) Number of shares b. If Todd invests his $5,100 In Gallagher rights and the price of Gallegher stock rises to $76 per share ex-rights, what would be his dollar profit on the rights? (First compute profits per right.) (Do not round intermediate caiculations) Dollar profit $ c. If Todd invests his $5,100 in Gallagher stock and the price of the stock rises to $74 per share ex-rights, what would be his total dollar profit? (Round intermedlate calculations.) d. What would be the answer to part b if the price of Gallagher's stock falis to $44 per share ex-rights Instead of rising to $74? (Negative answer should be Indicated by a minus sign.) Dollar profit/loss on the rights$ e. If Todd Invests his $5,100 in Gallagher stock and the price of the stock falls to $44 per share ex-rights, what would his dollar profit be? (Negative answer should be indicated by a minus sign.) Dollar profit / loss on the stock aof 15 lli Next >
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