Mr. and Mrs. Anderson own five shares of Magic Tricks Corporation's common stock. The market value of the stock is $78. The Andersons also have $66 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $66 for each five shares currently owned (based on five rights).

(Do not round intermediate calculations and round your answers to the nearest whole dollar.)

a.	What is the value of a right?

Value per right

$

b.	What is the value of the Andersons portfolio before the rights offering? (Portfolio in this question represents stock plus cash.)

Portfolio value

$

c-1.	Compute the diluted value (ex-rights) per share.

Diluted value

$

c-2.	If the Andersons participate in the rights offering, what will be the value of their portfolio, based on the diluted value (ex-rights) of the stock?

Portfolio value

$

d.	If they sell their rights but keep their stock at its diluted value and hold on to their cash, what will be the value of their portfolio?

Portfolio value

$