Salmon Co. is thinking to raise $100,000,000 for a new project. In order to preserve the ownership percentages of current stock holders, the management is thinking to raise new equity through a right issue and to fund the whole project through new equity. There are 200,000,000 outstanding shares and the market price of each share of stock is 128. The issue price of the new shares of stock will be $8.5 for each new share. The new project is expected to produce an after-tax cash flow of $23,000,000 every year for 8 years, and at the end of its life (that is, after 8 years) the project's assets can be sold for an after-tax cash amount of $5,000,000. The company currently (that is, before starting the new project) holds a $300,000,000 in debt and plans to keep this amount constant. The levered return on equity is 9% while the required return on debt is 3% and the corporate tax rate is 26%. (a) How many rights should be used to acquire one new share? [17 Points (b) What is the value of a right? 0.1944] (c) What is the NPV of the new project? [32,345,114.95]