Final answer:
The Number of Shares per Right for National Power is calculated by dividing the total outstanding shares, which are 1,060,000, by the new shares being sold, 212,000. This results in 5, which means one right is needed to buy one new share for every five rights held.
Step-by-step explanation:
Calculating the Number of Shares per Right
To calculate the Number of Shares per Right for National Power, which means the number of rights needed to buy one new share, we need to divide the total number of shares outstanding by the number of new shares to be sold. The company wants to raise $5,300,000 at $25 per share. Therefore, the number of new shares to be sold is $5,300,000 / $25 = 212,000 shares.
Now, to find the number of shares per right, we take the current number of shares outstanding, which is 1,060,000, and divide it by the new shares, 212,000. Therefore, the number of shares per right is 1,060,000 / 212,000 = 5. This means that each right allows the holder to purchase 1 new share for every 5 rights held.