Hoseknit Clothing has 9 million £1 ordinary shares in issue. The shares are currently trading in the stock market at £3.75. The directors wish to raise a further £4.5 million for expansion and a rights issue has been suggested. The company’s advisers have indicated that an issue price of £3.00 would be appropriate. You are required to calculate:

(a) the number of shares to be issued.

(b) the number of shares which a shareholder must presently own to be entitled to subscribe for a single new share.

(c) the discount to the current market price.