1. Valiant Industries has 30 million shares of stock outstanding at a price of $25.44 per share. The company wishes to raise more money and plans to do so through a rights issue. Every existing stockholder will receive one right for each share of stock held. For every six rights held by the stockholder, they can buy one share at a price of $24.00 per share. If all rights are exercised, how much money will be raised in this offer?
A. $127.2 million B. $720.0 million C. $120.0 million D. Some other amount
2. A zero coupon bond has a face value of $2,000 and has 15 years to maturity. If the YTM is 6.1%, which of the following would be closest to the price at which this bond will trade? (Assume annual compounding)
A. $823 B. $812 C. $4,114 D. $4,861