Yoma Inc. wishes to raise $5,000 in new equity with a rights offering. The subscription price will be $20 per share. The stock currently sells for $40 per share and there are 1,000 shares outstanding.

a. How many new shares will Yoma issue?

b. How many rights will be required to buy one share?

c. At what price will the stock sell when it goes ex-rights if the total value of all stock increases by the amount of the new funds?

d. What is the theoretical value of 1 right?