Right Issues

Image Storage Corporation has $1,000,000 shares outstanding. It wishes to issue $5000,000 new shares using a (North American) right issue. If the current stock price is $50 and the subscription price is $47/share, calculate the value of a right. Based on your calculation, explain and interpret the results in a one page memo to management.

You should show all calculations for the assignment. provide at least two scholarly references to support your paper. Your paper should be formatted in APA style.