Suppose you own $1,000$ shares of Sanger Machine Co$.$ You received an announcement on December $15$ that stated Sanger Machine Co$.$ plans to sell

an additional $5$ million shares of common stock through a rights offering to shareholders as of January $15.$ The current market price of the Sanger

Machine Co$.\text{'}$s shares is $$35\mathrm{.}20$ per share, and as per the announcement of the offering, the subscription price of the rights is $$30\mathrm{.}80.$ As an active

shareholder, 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 Sanger Machine Co$.$ on January $13$ and $200$ shares on January

This means that you have, shares that trade with rights$-$on and shares that trade ex$-$rights.

Sanger Machine Co$.$ has $11$ 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: Round your

intermediate calculation to two decimal places.$)$

Value

Formula value of a right for the rights$-$on case

per right

Market price of Sanger Machine Co$.$ stock on January $14$

per share

Formula value of a right when the stock is trading ex$-$rights

per right

Formula value of a right for the rights$-$on case if market price increases to $$45\mathrm{.}10$

per right