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Skyway Airlines has announced a rights offering for its shareholders. Harold Post owns 2,000 shares of Skyway Airlines stock. Five rights plus $60 cash are

Skyway Airlines has announced a rights offering for its shareholders. Harold Post owns 2,000 shares of Skyway Airlines stock. Five rights plus $60 cash are needed to buy one of the new shares. The stock is currently selling for $78 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. This part of the question is not part of your Connect assignment.

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