Rights Offerings $[$LO$4]$ Rook, Inc., is proposing a rights offering. Presently there are $450,000$ shares outstanding at $$71$ each. There will be $80,000$ new shares offered at $$64$ each.

What is the new market value of the company?

How many rights are associated with one of the new shares?

What is the ex$-$rights price?

What is the value of a right?

Why might a company have a rights offering rather than a general cash offer?