1. Toms Equipment has decided to raise $5.5 million via rights offering. Each old share carries one right. The subscription price of new shares is set at $20 per share. The current market price of the stock is $24.50 and there are 1,650,000 shares currently outstanding. How many rights are needed to buy one new share?

   	A.	3
   	B.	4
   	C.	5
   	D.	6
   	E.	None of the above

2. Using information from the above for Toms Equipment. What is the new share price and what is the value of a right?

   	A.	$33.97; $4.50
   	B.	$23.86; $0.64
   	C.	$23.86; $4.50
   	D.	$24.33; $3.86
   	E.	None of the above