please solve problem 11 you have to use some data from problem 10 show your calculations

per share than the general subscription offering stockholders. are exercised? right? 10. You are stockholder in Small Tech Inc., a company that is planning to raise new equity. The stock is trading at $15 per share, and there are 1 million shares outstanding. The firm issues 500,000 rights to buy additional shares at $10 per share to its existing a. What is the expected stock price after the rights b. If the rights are traded, what is the price per C. As a stockholder, are you concerned about the fact that the rights issue results in lower earnings c. As a stockholder, would you be concerned about the dilution effect lowering your stock price? Why or why not? 11. Assume that SmallTech has net income of $1 million and that the earnings will increase in proportion to the additional capital raised. a. Estimate the earnings per share that Small Tech will have after the rights issue described in the last problem. b. Assume that SmallTech could have raised the capital by issuing 333,333 shares at the prevailing market price of $15 per share (thus raising the same amount of equity as was raised in the rights issue) to the public. Estimate the earnings per share that Small Tech would have had with this alternative. (described in (b))