Walker Machine Tools has 6.3 million shares of common stock outstanding. The current market price of Walker common stock is exist68 per share rights-on The company's net income this year is exist21.50 million. A rights offering has been announced in which 630,000 new shares will be sold at exist62.50 per share. The subscription price plus six rights is needed to buy one of the new shares. a. What are the earnings per share and price-earnings ratio before the new shares are sold via the rights offering? b. What would the earnings per share be immediately after the rights offering? What would the price-earnings ratio be immediately after the rights offering? (Assume there is no change in the market value of the stock except for the change when the stock begins trading ex-rights.)