(Solved): Use the following information to answer the next 2 questions. Jumanji Corp. has decided to do a righ ...

Use the following information to answer the next 2 questions. Jumanji Corp. has decided to do a rights offering. It will issue 1 right for each share. The company currently has

shares outstanding, therefore

rights will be issued. The stock price today is

per share. The company wishes to raise

. It has set the subscription price at

per share. Question 21: What will be the ex-rights price? a)

b)

c)

d)

e)

Question 22: What will be the value of one right? a)

b)

c)

d)

e)

Question 23: ABC Corp. issues 5.074 million shares at a price of

per share. If the underwriter charges

of the gross proceeds as a fee, how much money was raised in the sale? a)

million b)

million c)

million d)

million e)

million