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Pandora Box Company Incorporated makes a rights issue at a subscription price of $ 5 a share. One new share can be purchased for every

Pandora Box Company Incorporated makes a rights issue at a subscription price of $5 a share. One new share can be purchased for every five shares held. Before the issue there were 25 million shares outstanding and the share price was $10.
a) What is the total amount of new money raised? Note: Do not round intermediate calculations. Enter your answer in millions.
b) What is the expected stock price after the rights are issued? Note: Enter your answer rounded to 4 decimal places.
c) By what percentage would the total value of the company need to fall before shareholders would be unwilling to take up their rights? Note: Do not round intermediate calculations. Enter your answer as a positive percent rounded to 2 decimal places.
d) Suppose that you initially own 200 shares plus $200 in the bank. If you take up your rights issue, what will be your total wealth after the issue is completed? Note: Do not round intermediate calculations. Enter your answer rounded to nearest whole dollar.
e) Suppose that the company now decides to issue the new stock at $4 instead of $5 a share. How many new shares would it have needed to raise the same sum of money? Note: Enter your answer in millions rounded to 1 decimal place.
f) What is the expected stock price under this new arrangement after the rights are issued? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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