Problem 17-15 Effect of rights on stockholder position [LO17-3] Mr. and Mrs. Anderson own five shares of Magic Tricks Corporation's common stock. The market value of the stock is $60. The Andersona also have $42 in cash. They have just received word of a rights offering. One new shore of stock can be purchased at $42 for each five shores currently owned (based on five rights). (Do not round intermediate calculations and round your answers to the neareat whole doller.) a. What is the value of a right? Valus par right b. What is the value of the Andersons portfolie before the rights offering? (Portfolio in this question represents atock plus coah.) Panfallo valus c-1. Compute the diluted value (ex-righta) per share. Diluted value c-2. If the Andersons participate in the rights offering what the value of their pertfelia, based on the diluted value (ex-right) of the stock? Parfulla valus d. If they all their twe rights but keep their stock at ita duted value and on to their cash value of their partfalia? Partalavalua