risk market premiun 5.5% and tax rate 40%

9. You have been asked for advice on a rights offering at $50 per share. The firm needs to raise $100 mil- by a firm with 10 million shares outstanding, trading lion in new equity. Assuming that the rights sub- scription price is $25, answer the following ques tions: a. How many rights would be needed to buy one share at the subscription price? b. Assuming that all rights are subscribed to, what will the ex-rights price be? c. Estimate the value per right. d. If the price of a right were different (higher or lower) than the value estimated in (c), how would you exploit the difference