Skyway Airlines has announced a rights offering for its shareholders. Harold Post owns 1,300 shares of Skyway Airlines stock. Five rights plus $53 cash are needed to buy one of the new shares. The stock is currently selling for $64 rights-on.

a. What is the value of a right? (Round the final answer to 2 decimal places.)

Value per right $

b-1. How many of the new shares could Harold buy if he exercised all his rights?

Number of shares

b-2. How much cash would this require?

Cash required $

c. Not available for Connect.