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Lamar Inc. is attempting to raise $5,000,000 in new equity with a rights offering. The subscription...

Lamar Inc. is attempting to raise $5,000,000 in new equity with a rights offering. The subscription price will be $40 per share. The stock currently sells for $50 per share and there are 250,000 shares outstanding.

a) How many rights are needed to buy a new share? (2 points)

b) What will the ex-right price be if all rights are exercised? (2 points)

c) What is the value of one right? (1 point)

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