$1.$ Standard Tea Company $($STC$)$ plans to raise an additional rupee of $5$ million through rights offering. Current market price of the company is Rs $300.$ It has $100,000$ shares outstanding. Stockholders are offered a new share at a price of Rs $200$ each.

Required:

a$.$ How many new shares will have to be sold to raise required funds?

b$.$ How many rights will be required to purchase a new share?

c$.$ What will be theoretical value of rights?

d$.$ Calculate ex$-$rights price.

e$.$ Mr$.$ Sagar Hamal's total assets consist of $100$ shares of STC$.$ Prepare statements of Mr$.$ Hamal's total assets before rights offerings.

f$.$ Prepare statement showing Mr$.$ Hamal's total assets after rights offerings for each of these courses of action if$,$

i$.$ he sells all his rights.

ii$.$ he exercises all his rights.

iii. he sells $60$ rights and exercises $40$ rights.

iv$.$ he neither exercises nor sells the rights.