Number 20. Please show how you work to get the solution.

If a shareholder or investor wants to acquire new stock under a rights plant they must: a. acquire new stock in the market to get a controlling fraction of shares to be eligible for rights. b. simply pay a registration fee and turn in the subscription price. c. acquire the correct rights per share desired, turn the rights and the total subscription price into the subscription agent. d. acquire the correct rights and wait for the company to send you the stock, e. call their broker and sell some CBOE options to make any money. A firm wishes to issue a perpetual callable bond. The current interest rate is 9%. Next year, there is a 40% chance that the interest rate will be 5% and a 60% chance that the rate will be 13.3%. The bond is callable at $1.090. and it will be called if the interest rare drops to 5%. What is the bond's value today if the coupon is set at $100