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Question 13 a) Describe the purpose and process of a rights issue (2 marks) b) A company conducted a one-for-five renounceable rights issue at a subscription price of $35 when its cum-rights price was $43.50. (0) Calculate the theoretical value of the rights and the ex-rights price (2 marks) (ii) Calculate the amount raised by the company assuming it had 50 million issued shares prior to the rights issue, the process was a success and it paid fees of 6% to the investment bank that arranged the rights issue. (2 marks) Edit View Insert Format Tools Table BIU 12pt Paragraph AT v 6 pts