18. 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 pur- chased 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 following: (L05)

a. Number of new shares.

b. Amount of new investment.

c. Total value of company after issue.

d. Total number of shares after issue.

e. Share price after the issue.