Question: Rights. Associated Breweries is planning to market unleaded beer. To finance the venture it proposes to make a rights issue with a subscription price of $10. One new share can be purchased for each two shares held. The company currently has outstanding 100,000 shares priced at $40 a share. Assuming that the new money is invested to earn a fair return, give values for the:
1) Number of new shares
2) Amount of new investment
3) Total value of company after issue
4) Total number of shares after issue
5) Share price after the issue