Muskoka Tourism has announced a rights offer to raise $30 million for a new magazine, titled Discover Muskoka. The magazine will review potential articles after the author pays a nonrefundable reviewing fee of $5,000 per page. The stock currently sells for $52 per share and there are 3.9 million shares outstanding.

Required

1. What is the maximum possible subscription price? What is the minimum?

2. If the subscription price is set at $46 per share, how many shares must be sold? How many rights will it take to buy one share?

3. What is the ex-rights price? What is the value of a right?