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Please show full work including formulas without the use of excel. 5. (13 points) Firm CWBY needs to raise $4.2 billion dollars of new equity

image text in transcribedPlease show full work including formulas without the use of excel.

5. (13 points) Firm CWBY needs to raise $4.2 billion dollars of new equity to fund new investments. The current market price of CWBY's stock is $4.25 per share. There are currently 1 billion shares outstanding. The firm wants to conduct a 4 for 3 rights offer. The price per share in the offer will be $3.15 per new share. If we assume 100% subscription rate, what is the value of each right? What will be the impact on the market price of the stock

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