The Andersons own six shares of Magic Tricks Corporation's common stock. The market value of the stock is \$70. The Andersons also have $56 in cash. They have just received word of a rights offering. One new share of stock can be purchased at $56 for each six shares currently owned (based on six rights). Note: Do not round intermediate calculations and round your answers to the nearest whole dollor. a. What is the value of a right? b. What is the value of the Andersons' portfolio before the rights offering? (Portfolio in this question represents stock plus cash) c-1. Compute the diluted value (ex-rights) per share. 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? a. What is the value of o right? b. What is the value of the Andersons' portfolio before the rights offering? (Portolio in this question represents stock plus cash) e-1. Compute the diluted value (ex-fights) per share. C-2. If the Andersons participate in the rights offering, what will be the value of their portolio, based on the diluted value (ox-tights) of the stock? d. If they sell their two rights but keep their stock at its diluted value and hold on to their cest, what will be the value of their portiolio? Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 53,001 shares. Ms. Ramsey and her friends on the board control 63,001 shares, Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting. a. How many directors can Mr. Clark be sure of electing? Note: Do not round intermediate calculations. Round down your onswer to the nearest whole number. b. How many directors can Ms. Ramsey and her friends be sure of electing? Note: Do not round intermediate calculations. Round down your answer to the nearest whole number. c-1. How many directors could Mc. Clark elect if he obtains all the proxies for the uncommitted votes? Note: Do not round intermediate calculations. Round down your answer to the nearest whole number. c.2. Will he control the boord? Yes No d. If nine directors were to be elected, and Ms. Ramsev and hef friends had 79.001 shares and Mr. Clark had 59.001 shares plus half b. How many directors can Ms. Ramsey and her friends be sure of electing? Note: Do not round intermediate calculations. Round down your answer to the nearest whole number. C-1. How many directors could Mr. Clark elect if he obtains all the proxies for the uncornmitted votes? Note: Do not round intermediate calculations. Round down your answer to the nearest whole number, c-2. Will he control the board? Yes No d. If nine directors were to be elected, and Mi. Ramsey and her friends bad 79.001 shares and Mr. Clark had 59.001 shares plus half the uncommitted votes, how many directors could Mr. Clark elect? Assume the same number of total shares as the original question. Note: Do not round intermediate calculations. Round down your answer to the nearest whole number
