Todd Winningham IV has $6,000 to invest. Todd owns shares of Gallagher Tennis Clubs Inc. Gallagher has issued a rights offering to its common shareholders. Seven rights plus $70 cash will buy one new share. Gallaghers stock is selling for $84 ex-rights.

a-1. How many rights could Todd buy with his $6,000?

Number of rights

a-2. Alternatively, how many shares of stock could he buy with the same $6,000 at $84 per share? (Round the final answer to the nearest whole number.)

Number of shares

b. If Todd invests his $6,000 in Gallagher rights and the price of Gallagher stock rises to $98 per share ex-rights, what would be his dollar profit on the rights? (First compute profits per right.) (Do not round intermediate calculations.)

Dollar profit $

c. If Todd invests his $6,000 in Gallagher stock and the price of the stock rises to $89 per share ex-rights, what would be his total dollar profit? (Round intermediate calculations.)

Total dollar profit $

d. What would be the answer to part b if the price of Gallaghers stock falls to $62 per share ex-rights instead of rising to $89? (Negative answer should be indicated by a minus sign.)

Dollar profit / loss on the rights $

e. If Todd invests his $6,000 in Gallagher stock and the price of the stock falls to $62 per share ex-rights, what would his dollar profit be? (Negative answer should be indicated by a minus sign.)

Dollar profit / loss on the stock $