Rise plc is proposing a rights offering. Presently there are 261,000 shares outstanding at 85 each. There will be 87,000 new shares offered at 70 each.

1) What is the new market value of the company?

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

3) What is the ex-rights price?

4) What is the value of a right?

5) Why might a company have a rights offering rather than a general cash offer.