Skyway Airlines has announced a rights offering for its shareholders. Harold Post owns $1,600$ shares of Skyway Airlines stock. Five rights plus $$56$ cash are needed to buy one of the new shares. The stock is currently selling for $$70$ 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.