Rainbow Corp. has stock that currently sells for $$12$ per share, and there are $6$ million shares outstanding. It has announced rights offer to raise $$5$ million, with the subscription price set at $$5$ per share. The following rights offer timetable is planned

January $4,2024-$ announcement date

February $8,2024-$holder of record date

February $23,2024-$ rights expiration date

THIS IS ONE QUESTION ONLY

USE FORMULA AND EQUATIONS

DO NOT USE EXCEL

Suppose you own $3,000$ shares of Rainbow Corp. stock.

a$.$ How many shares must be sold to raise the required amount?

b$.$ How many rights are required to buy one new share?

c$.$ What is the value of a right?

d$.$ What is the ex$-$rights price?

e$.$ What is the ex$-$rights date?$$What is your wealth position and percentage ownership in this company on the announcement date?

f$.$ What is your wealth position and percentage ownership in this company if you decide to sell your rights before the expiration date?

g$.$ What is your wealth position and percentage ownership in this company if you decide to exercise your rights before the expiration date?

h$.$ What is your wealth position and percentage ownership in this company if you decide to let your rights expire?