The Andersons own five shares of Magic Tricks Corporation's common stock. The market value of the stock is $$68.$ The Andersons

also have $$50$ in cash. They have just received word of a rights offering. One new share of stock can be purchased at $$50$ for each

References

Value per right

b$.$ What is the value of the Andersons' portfolio before the rights offering? $($Portfolio in this question represents stock plus cash.$)$

Portfolio value

five shares currently owned $($based on five rights$).$

Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.

a$.$ What is the value of a right?

c$-1.$ Compute the diluted value $($ex$-$rights$)$ per share.

Diluted value

$c-2.$ If the Andersons participate in the rights offering, what will be the value of their portfolio, based on the diluted value $($ex$-$rights$)$ of

the stock?

Portfolio value

d$.$ If they sell their two rights but keep their stock at its diluted value and hold on to their cash, what will be the value of their portfolio?