The Clifford Corporation has announced a rights offer to raise $20 million

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The Clifford Corporation has announced a rights offer to raise $20 million for a new journal, the Journal of Financial Excess.
This journal will review potential articles after the author pays a nonrefundable reviewing fee of $4,000 per page.
The stock currently sells for $60 per share, and there are 3.1 million shares outstanding.
	Facts
	Amount to be raised		20,000,000
	Stock Price per Share		60
	Shares Outstanding		3,100,000
a. What is the maximum possible subscription price? What is the minimum?
	The maximum possible subscription price is			60	(Current Share Price)
	The minimum price is anything greater than			0
b. If the subscription price is set at $50 per share, how many shares must be sold? How many rights will it take to buy one share?
	Subscription Price	50
	Number of new shares		400,000.00	Amount to be raised / Subscrition Price
	Number of rights needed		7.75	Shares outstanding / Number of new shares
c. What is the ex-rights price? What is the value of a right?
				#Rights x Share Price			Ex Rights shares
Ex-rights price		58.85714		465	515		8.75		58.85714
Value of a right		-58.8571		-58.85714	(Share price - Ex Rights Price [J29])
d. A shareholder with 2,000 shares before the offering has no desire (or money) to buy additional shares offered as rights. What is his portfolio value before and after the rights offer?
			Shares	Rights	SharePRice	ExRights	Value
Portfolio value before rights			2000		60		0.00	(Share Price x number of shares)
Portfolio value after rights			2000	-58.86		58.857143	0.00	(number of shares x Value of right  + number of shares x ex rights price)