2. Rights Offering (please show calculations),The Clifford Corporation has announced a rights offer to raise $40 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 $5,000 per page. The stock current sells for $34 per share, and there are 3.4 million shares outstanding.,,(a) What is the maximum possible subscription price? What is the minimum?,(b) If the subscription price is set at $30 per share, how many shares must be sold? How many rights will it take to buy one share?,(c) What is the ex-rights price? What is the value of a right?,(d) Show how a shareholder with 1,000 shares before the offering and no desire (or money) to buy additional shares is not harmed by the rights offer.,
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