(a) A company has a market capitalisation of 6m and its current share price is 1.50. It has 4m shares in issue and the directors have decided to have a 1-for-4 scrip issue. 0 Determine the market capitalisation of the company, the total number of shares, and the price per share after the scrip issue. () Suppose that an investor holds 50,000 shares before the issue, how many shares would he have after the issue? What is the value of his shares before and after the issue? (HH) A simplified balance sheet of the company before the issue is given below: Non-current assets Net current assets Debenture 000's 1500 450 (300) 1650 Share capital (25p) Reserves 1000 650 1650 Rewrite the balance sheet after the scrip issue, ignoring the expenses of the issue. no [8 marks] (b) Why would a company wish to consider a scrip issue? What are the arguments against such an undertaking