Some stockhoiders have a preemptive right that allows them to maintain their ownership percentage in the company by purchasing additional shares of any new stock issues. Rights offerings, like preemfive rights, prevent dilution of stock for existing shareholders when new shares are issued. Which of these companies are likely to make a rights offering? Companies that need to raise additional capatal to fund growth projects Companies with excess free cash flow that can be used to fund growth projects Suppose you own 1,000 shares of Dairy Industries Co. You received an announcement on December 15 that stated Dairy Industries Co. plans to sell an additional 5 miltion shares of common stock through a rights offering to shareholders as of January 15 . The current market price of the Dairy Industries Co, $ shares is $44.80 per shace, and as per the announcement of the offering, the subscription price of the rights is $39.20. As an active shureholder, you collect and calculate the following information to use in your analysis of the rights offering:(Note: Round your intermediate calculation to two decimal places. ) - Your review of your share transaction details reveals that you bought 800 shares of Dairy Industries Co, on 2anuary13 and 200 shares on January 15. - This means that you have shares that trade with rights-on and shares that trade ex-rights. - Dairy Industries Co. has 14 million shares of common stock outstanding. Thus, each right will enable you to buy shares through the rights offering, and it would take rights to purchase 1 new share, - Each stockholder receives 1 right for each share currently held. You will be eligible to purchase new shares in the new share offering. Based on the information you collected and calculated above, complete the following table for your analysis of the rights offering. (Note: found your intermediate calculation to two decimal places.) Value \begin{tabular}{l} Formula value of a right for the rights-on case \\ Market price of Dairy industries Co. stock on January 14 \\ Formula value of a right when the stock is trading ex-rights \\ Formula value of a right for the rights-on case if market price increases to $57.40 per share \\ \hline \end{tabular}