Chapter 8, Problem 3P

a)

Summary Introduction

To determine: The number of new shares can be purchased.

b)

Summary Introduction

To determine: The market value of the stock after the rights offering.

c)

Summary Introduction

To determine: The total investment in the company after the rights offering and the manner in which investment split between original and new shares.

d)

Summary Introduction

To determine: The investment in the company after the rights offering and how is this split between old shares and rights.