Question: The Clifford Corporation has announced a rights offer to raise $25 million. The stock currently sells for $60 per share, and there are 2 million shares outstanding.
a. If the subscription price is set at $50 per share, how many shares must be sold?
b. How many rights will it take to buy one share?
c. What is the ex-rights price (price after the rights are exercised)?
d. What is the value of a right?